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vladimir1956 [14]
4 years ago
13

How do i journalize purchased merchandise on account from galsten co., $360,000, terms n/30?

Business
1 answer:
olga nikolaevna [1]4 years ago
8 0
To record the purchase of merchandise there are two methods:

1) under Perpetual Inventory System the entry is
Inventory (Dr) 360000
Accounts payable (Cr) 360000

2) under Periodic Inventory System the entry is
Purchase (Dr) 360000
Accounts payable (Cr) 360000
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