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Accounts Used in Purchasing a. What accounts are used when a business purchases
Chapter 15, Problem 2(choose chapter or problem)
QUESTION:
Accounts Used in Purchasing
a. What accounts are used when a business purchases merchandise on account?
b. What type of account is Transportation In?
Questions & Answers
QUESTION:
Accounts Used in Purchasing
a. What accounts are used when a business purchases merchandise on account?
b. What type of account is Transportation In?
ANSWER:Step 1 of 3
Merchandise purchase on account refers to the transaction in which merchandise is not purchased in exchange for cash. In this case, payment is made to the supplier as per the credit terms.