Asked by Giovanni Figueroa on May 04, 2024
Verified
Purchased merchandise on credit; terms of 2/10, n/30. - Periodic
Debit ________ Credit ________
A) Cash
B) Accounts receivable
C) Merchandise inventory
D) Supplies
E) Accounts payable
F) Sales
G) Sales returns and allowances
H) Sales discounts
I) Cost of goods sold
J) Purchases
K) Purchase returns and allowances
L) Purchase discounts
M) Freight-in
Periodic
In accounting, periodic refers to a system or method where financial information and inventory levels are updated at specific intervals, rather than continuously.
Purchases
The total amount spent on goods and materials bought for resale or use in production during an accounting period.
- Pinpoint the proper accounts to be charged and credited in assorted merchandise transactions under the perpetual and periodic inventory systems.
- Comprehend the method for recording transportation costs and purchases of merchandise on credit across both schemes.
Verified Answer
CL
Cristhian LinaresMay 08, 2024
Final Answer :
J, E
Explanation :
In a periodic inventory system, when merchandise is purchased on credit, the account debited is "Purchases" (J) because it records the cost of merchandise bought for resale. The account credited is "Accounts Payable" (E) because this transaction increases the company's obligations to pay its suppliers in the future.
Learning Objectives
- Pinpoint the proper accounts to be charged and credited in assorted merchandise transactions under the perpetual and periodic inventory systems.
- Comprehend the method for recording transportation costs and purchases of merchandise on credit across both schemes.