Question

A buyer uses a periodic inventory system, and on December 5, it purchases $4,000 of merchandise on credit terms of 2/10, n/30. Complete the journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.Date Account Title Debit Credit Dec. 15

Answer 1

Answer and Explanation:

The journal entry is shown below:

On dec 5

Purchase Dr $4,000

   To account payable $4,000

(being inventory purchase on account is recorded)

Here the inventory is to be debited as it increased the assets and credited the account payable as it also increased the liabilities