Question

On May 1. Anders Company purchased merchandise in the amount of $5,800 from Shilling, with credit terms of 2/10, n/30. Anders uses the perpetual inventory system and the gross method. The journal entry or entries that Anders will make on May 1 is:________A) Sales B) 5,80 Accounts receivable 5,80 C) Purchases ccounts payable 5,800 5.80 D) Merchandise Inventory 5,80 5,800 erchandise Inventory ash 5,800 5,800 19)

Answer 1

Answer:

• Dr Merchandise Inventory 5,800
• Cr Accounts Payable 5,800

Explanation:

The only records that Anders Company should make on May 1 regarding the purchase of the merchandise form Shilling is:

Debit record Merchandise Inventory 5,800 (since merchandise inventory is an asset account, when it increases it should be debited)

Credit record Accounts Payable 5,800 (since accounts payable is an liability account, when it increases it should be credited)