Merchandise Purchases a. Which accounts are debited and credited when merchandise is

Chapter 15, Problem 4

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QUESTION:

Merchandise Purchases

a.  Which accounts are debited and credited when merchandise is purchased for cash?

b.  Which accounts are debited and credited when merchandise is purchased on account?

Questions & Answers

QUESTION:

Merchandise Purchases

a.  Which accounts are debited and credited when merchandise is purchased for cash?

b.  Which accounts are debited and credited when merchandise is purchased on account?

ANSWER:

                                                                 Step 1 of 3

Merchandise refers to the inventory or supplies that are purchased by the business for the business’s process. It can be purchased with both cash and credit.

                                                                 

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