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What is the Journal Entry for “The Company purchased $6,000 worth of merchandise on credit”?

  1. Dr Accounts Payable and Cr Merchandise
  2. Dr Bank and Cr Accounts Payable
  3. Dr Merchandise and Cr Accounts Payable
  4. None of the above

Auditing ERP Financial Accounting IFRS Tally ERP
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Question added by Anil Lalwani , Chief Accountant , Al Ahli Hospital
Date Posted: 2016/10/17
Upvote (1) Views (15) Followers (7) Answers (6) Report Question
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manseer muhammed ali
by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

Journal Entry for Dr Merchandise and Cr Accounts Payable

Alfred Jr. Santamaria
by Alfred Jr. Santamaria , State Auditor , Commission on Audit

C if the company is using perpetual system.  But if the company is using the periodic inventory system, then debit to Purchases account.

Umar Saeed
by Umar Saeed , Management Trainee Officer , Synthetic Products Enterprises Limited

Company is buying merchandise/goods on credit so journal entry will be:

Dr Merchandise/good and Cr Accounts Payable

Nazmul Islam CMA
by Nazmul Islam CMA , Manager , Robi Axiatal Ltd.

C-------------------------------------------------------------------------

Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

3. Dr merchandise a/c (purchase a/c and CR Trade  payable  a/c

Johny V Sebastian Verananickal
by Johny V Sebastian Verananickal , Associate , Unity Auditing

Dr Merchandise and Cr Accounts Payable

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