(2) When a merchandising business purchases goods, the journal entry is a debit to Inventory and a credit to Cash.(F) (3) Adiscount is made by the seller to the buyer for prompt payment.(T) (4) A sales return is the amount which the returned goods from sellers cost.(F) (5) Cos...
More Information on the Depreciation Entry It is important to understand the following: The depreciation entry will cause a decrease in the company’s net income, but the company’s cash is not decreasing. (Cash was decreased when the asset was acquired.) The depreciation entry is an estimate...
The journal entry to record the cost of warranty repairs that were incurred during the current period, but related to sales made in prior years, includes a debit to Warranty Expense.() 答案:正确 你可能感兴趣的试题 判断题 Intangible assets differ from property, plant and equipment assets in th...
If an organization purchases inventory on credit, the transaction will be entered as a debit in the inventory account and as a credit in the accounts payable account. In both examples, the journal entries increase and decrease the corresponding accounts accordingly. Following the double entry system...
Answer to: A single journal entry must debit only one account and credit only one account for the same amount so that the entry is in balance. a)...
You should get at least two lines returned from the open table: each journal entry will have at least one debit and one credit record. If you don't get any results returned, then the journal entry has been removed from the GL table which would explain why you are not a...
In the journal entry above, an expense has to be recorded to show the loss. And as a contra entry against this, we have to reduce our purchases account (it is purchases for theperiodic system of inventory) or inventory account (for theperpetual system). ...
Decrease Increase Ready to solve an example? Let’s take a simple one and explain the process step-by-step. Double-Entry Bookkeeping Example Let’s say the owner of an advertising company decides to invest $10,000 cash in his business. There are three main steps you have to follow to...
Decrease Increase Ready to solve an example? Let’s take a simple one and explain the process step-by-step. Double-Entry Bookkeeping Example Let’s say the owner of an advertising company decides to invest $10,000 cash in his business. There are three main steps you have to follow to...
The other method for writing off inventory is known as the allowance method. It may be more appropriate when inventory can be reasonably estimated to have lost value but the inventory hasn't yet been disposed of. A business will record a journal entry with a credit to a contra asset account...