Under the perpetual inventory system, purchase of inventory on account is recorded by Debit to Inventory(Asset) and Credit to Accounts Payable(Liability) |
Total assets and Total Liabilities increase |
Option D is correct |
What is the effect of an entry to record the purchase of inventory on account under...
Fan Company sells inventory on account. The entry or entries to record this sale using a perpetual inventory system would include a: Multiple Choice Debit to Accounts Receivable Credit to Sales Revenue Debit to Cost of Goods Sold. All of the these are included to record the sale. Katie Malls has the following inventory transactions for the year: Date Jan. 1 Apr. 8 Transaction Beginning inventory Purchase Numbers of Units 20 50 Unit Cost $35 40 Total cost $ 700...
Alpha filed to record the whole journal entry for a purchase discount of inventory. The purchase had been made on credit using the periodic inventory system. What are the JE? Are assets, liabilities or net income; overstated, understated, neither? Why?
5) A purchase return or allowance under a perpetual inventory system is credited to: A) Accounts Payable B) Purchase Returns and Allowances C) Inventory D) Purchases 6) Which of the following accounts is not a contra account? A. Inventory B. Accumulated Amortization C. Sales Returns and Allowances D. Sales Discounts 7) To calculate the gross margin percentage, A. Divide net sales by net income B. Divide current assets by current liabilities C. Divide total liabilities by total assets D. Divide...
Which of the following is the entry to record the purchase of inventory on account? Debit Inventory; Credit Cost of Goods Sold Debit Sales; Credit Accounts Receivable Debit Inventory; Credit Accounts Payable Debit Inventory; Credit Accounts Receivable Debit Accounts Payable; Credit Inventory
The journal entry for the purchase of inventory on account using the perpetual inventory system is Debit Credit Date Accounts and Explanation OA Merchandise Iinventory OB. |Accounts Payable O C. Merchandise Inventory OD. Merchandise Inventory ocx Cash XoxcX Merchandise Inventory 1ml Accounts Payable Accounts Receivable Click to select your answer 445
Using the periodic method, what is the journal entry to record the purchase of 2000 of merchandise inventory on account?A. Dr. Purchases 2,000 Cr. Cash 2,000B. Dr. Cash 2,000 Cr. Purchases 2,000C. Dr. Purchases 2,000 Cr. AccountsD. Dr. Merchandise Inventory 2,000 Cr. Accounts Receivable 2,000E. None of the above
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...
A journal entry to record the sale of inventory on account using the perpetual method will include a?
5
total journal entries
Requirement 1a. Joumalize Allegheny Tire's inventory transactions for the year under the perpetual system (Record debits first, then credits. Explanations are not required. Show all amounts in thousands) The first transaction is the purchase of inventory. Record the entry Debit December The next transaction is the sale of Inventory. Record the entry. (Do not yet record the cost related to the sale. We do this in the next journal entry) Journal Entry Date Accounts Debit Credit...
Under a perpetual inventory system, the entry to record the cost of goods sold would include a debit to O A. Inventory and a credit to Sales Revenue for the retail price of the inventory OB. Inventory and a credit to Cost of Goods Sold for the cost of the inventory OC. Cost of Goods Sold and a credit to Inventory for the cost of the inventory OD. Cost of Goods Sold and a credit to Inventory for the retail...