Based on the purchase details by the company, the correct journal entry to record the purchase on July 5 is c) Debit Merchandise Inventory $1,800; credit Accounts Payable $1,800.
<h3>Why is this the correct journal entry?</h3>
On July 5, the amount that was purchased was still $1,800. Nothing had been returned yet. The amount that will be debited to Merchandising as an asset will therefore be $1,800.
The Accounts Payable account will be credited the same amount to reflect that the company owes money for the purchase.
In conclusion, option C is correct.
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Answer:
For example, the government, through its power of eminent domain, can take property for a public purpose so long as it fairly compensates the owner pursuant to the Fifth Amendment to the US Constitution. Likewise, local, state and federal laws and regulations limit how a property owner can use real property
Answer: The correct answer is "d. A good example of a sunk cost is money that a banking corporation spent last year to investigate the site for a new office, then expensed that cost for tax purposes, and now is deciding whether to go forward with the project."
Explanation: Sunk costs are those costs that have already been incurred and cannot be recovered in the future. Including the time, money or other resources that were spent on a project, investment or other activity and that will not be recovered.
Purchasing inventory increases your accounts payable and the inventory balance. Trade payables are part of current liabilities and inventories are part of current assets. Both the balance of current assets and current liabilities will increase and the net effect on working capital will be zero. Therefore, working capital remains the same.
Cash in bank accounts and cash, including unpaid customer checks. Securities such as US Treasury bills and money market funds. A short-term investment that the company plans to sell within one year. Accounts receivable are less a provision for accounts receivable that are unlikely to be paid.
In short, working capital is the money available to meet current short-term obligations. To ensure your working capital is working effectively, you need to calculate your current situation, anticipate your future needs, and consider how to ensure you always have enough cash.
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Answer:
The correct answer is letter "A": Are amounts owed to suppliers for products and/or services purchased on credit.
Explanation:
Accounts Payable is the amount of the total invoices currently awaiting payment by the company. These invoices are from suppliers of products and services that have recently been delivered. They are usually due within 15, 30 or 45 days after receiving the invoice from the vendor.