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liubo4ka [24]
2 years ago
5

Abbott Company purchased $8,500 of merchandise inventory on account. Abbott uses the perpetual inventory method. How does this t

ransaction affect the financial statements?
Business
1 answer:
Ipatiy [6.2K]2 years ago
8 0

This transaction will affect the financial statement by: Increase inventory and increase accounts payable.

<h3>Financial statement:</h3>

Assuming the company purchased merchandise inventory on account of the amount of  $8,500 using  the perpetual inventory method the effect of the transaction on the financial statement is: Inventory will increase by $8,500 and accounts payable will increase by $8,500.

The company inventory will increase due to the purchase they made while the company accounts payable will increase because the company purchased the goods on credit which simply means that they are yet to pay their suppliers.

Inconclusion this transaction will affect the financial statement by: Increase inventory and increase accounts payable.

Learn more about financial statement here:brainly.com/question/24498019

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What is the main reason the government creates regulations? to keep control over what is bought and sold in the us to make sure
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to make sure business is conducted safely and fairly

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3 years ago
Provide the names of two (a) asset accounts, (b) liability accounts, and (c) equity accounts.
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two libability accounts

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