Question

The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is: debit Purchases $965; credit Accounts Payable $965 debit Accounts Payable $965, credit Freight in $65; credit Purchases $900 debit Purchases $900, debit Freight In $65; credit Accounts Payable $965 debit Accounts Receivable $965; credit Sales $965

Name: the journal entry to record the purchase on account of 900 of merchandise with freight of 65 prepaid by their supplier and added to the invoice is question 22 options debit purchases 965 credit accoun
Uploaded: 2023-08-31T00:40:50-08:00
Duration: 1 min 1 s
Channel: Brooke Bussoletti
Description: the journal entry to record the purchase on account of 900 of merchandise with freight of 65 prepaid by their supplier and added to the invoice is question 22 options debit purchases 965 credit accoun

          The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is:

debit Purchases $965; credit Accounts Payable $965

debit Accounts Payable $965, credit Freight in $65; credit Purchases $900

debit Purchases $900, debit Freight In $65; credit Accounts Payable $965

debit Accounts Receivable $965; credit Sales $965

Added by Sherill G.

Mathematics for Finance An Introduction to Financial Engineering

Marek Capinski 1st Edition

Instant Answer

Solved by Expert Brooke Bussoletti

08/31/2023

Step 1

The amount of the merchandise is $900. Second, the company is also paying for freight, which is a cost associated with getting the merchandise to the company. This is often recorded in a Freight In or Transportation In account. The amount of the freight is $65. Show more…

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The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is: debit Purchases $965; credit Accounts Payable $965 debit Accounts Payable $965, credit Freight in $65; credit Purchases $900 debit Purchases $900, debit Freight In $65; credit Accounts Payable $965 debit Accounts Receivable $965; credit Sales $965