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Help on final exam and forgot how to do this

Help on final exam and forgot how to do this-example-1
User Sravanti
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To be able to record a purchase on account, one would have debit the asset account that is being purchased and credit the accounts payable account.

So, from the image, since the merchandise is being purchased on account, then you would debit the Merchandise Inventory account and credit the Accounts Payable account.

The journal entry for the purchase on January 9 would be look like:

Date Account Titles Debit Credit

Jan 9 Merchandise Inventory 6,100

Accounts Payable 6,100

So, in the second table, to record the payment of freight on January 20, one would have to debit the Freight Expense account and then credit the Cash account.

So, the journal entry for the payment of freight on January 20 would look like:

Date Account Titles Debit Credit

Jan 20 Freight Expense 100

Cash 100

User FelEnd
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