A company using the perpetual inventory system purchased merchandise on account for $5,000. Give the journal entry to record this transaction
What will be an ideal response
Merchandise Inventory 5,000
Accounts Payable 5,000
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By using the book value method to record the conversion of convertible bonds, managers are able to protect themselves from recording conversion losses.
Answer the following statement true (T) or false (F)
Bonds that mature in installments are called
a. term bonds. b. debenture bonds. c. zero coupon bonds. d. serial bonds.
Which of the following are the basic postulates underlying historical costing?
a. Going Concern, Time Period, Market Prices, Monetary Unit b. Objectivity, Time Period, Accounting Entity, Monetary Unit c. Going Concern, Time Period, Accounting Entity, Monetary Unit d. Going Concern, Time Period, Financial Statements, Monetary Unit
Which of the following contracts would be void because of undue influence?
A) Mikhail wants Ivana to sign a contract for the sale of her apartment. He tells her that if she does not sign the contract, he will harm her son. B) Janet owns a pair of zircon earrings. She sells them claiming they are diamonds and receives a much higher price for them. C) Carla unknowingly sells a painting to a collector thinking it's genuine. However, the collector finds out that it actually is an imitation. D) Gary has been the McGill family attorney for decades. When he needs investors for his business, he demands that Mr. McGill invest in the new business.