Question

Adidea Corp regularly buts merchandise from vendors. It just purchased 1,000 units on credit from one of its vendors. How will the company record this transaction

Answer 1

Answer:

You did not include the price they bought the units at.

I will assume this price is $5.

= 5 * 1,000

= $5,000

Recording it will be:

    Account                                                           Debit                     Credit

    Merchandise Inventory                                 $5,000

          Accounts Payable                                                                 $5,000