A company using a periodic inventory system purchases goods for resale. Which of the following is part of the resulting accounting entry? O a) Purchases are debited to Merchandise Inventory. Ob) Purchases are debited to Purchases.

A company using a periodic inventory system purchases goods for resale. Which of the following is part of the resulting accounting entry? O a) Purchases are debited to Merchandise Inventory. Ob) Purchases are debited to Purchases.

Name: A company using a periodic inventory system purchases goods for resal
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Description: A company using a periodic inventory system purchases goods for resale. Which ofthe following is part of the resulting accounting entry?Oa) Purchases are debited to Merchandise Inventory.O b) Purchases are debited to Purchases.Oc) Purchases are debi

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 2DQ: For each of the following accounts, identify whether the normal balance is a debit or a credit. Also...

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Which of the following accounts are used when recording the sales entry of a sale on credit? A. merchandise inventory, cash B. accounts receivable, merchandise inventory C. accounts receivable, sales D. sales, cost of goods sold
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Under the perpetual inventory system, how does the seller record sales made on account?
Using the perpetual inventory system, what account is debited when a business finds that its physical count of inventory is greater than the recorded amount?
Under the retail inventory method, freight-in would be included in the calculation of the goods available for sale for which of the following?
For each of the following accounts, identify whether the normal balance is a debit or a credit. Also specify whether the account is a contra account. a. Sales Returns and Allowances b. Merchandise Inventory c. Sales d. d Freight In e. Purchases Returns and Allowances f. Sales Tax Payable g. Purchases
Why is it necessary to adjust the Merchandise Inventory account under a periodic inventory system?
What accounts are used to recognize a retailers purchase from a manufacturer on credit? A. accounts receivable, merchandise inventory B. accounts payable, merchandise inventory C. accounts payable, cash D. sales, accounts receivable
Which of the following describes features of a perpetual inventory system? A. Technology is normally used to record inventory changes. B. Merchandise bought is recorded as purchases. C. An adjusting journal entry is required at year end, to match physical counts to the asset account. D. Inventory is updated at the end of the period.
Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3.
Identify items missing in determining cost of goods sold For (a) through (e), identify the items designated by X and Y. A. Purchases (X + Y) = Net purchases B. Net purchases + X = Cost of inventory purchased C. Inventory (beginning) + Cost of inventory purchased = X D. Inventory available for sale X = Cost of inventory before estimated returns E. Cost of goods sold before estimated returns X = Cost of goods sold
The difference between merchandise available for sale and the end-of-period merchandise inventory is called (a) gross profit. (b) net purchases. (c) net sales. (d) cost of goods sold.