Question

Prepare separate entries for each transaction for Flounder Company. The merchandise purchased by Bramble on June 10 had cost Flounder $4,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Answer 1

June 10

Dr. Merchandise Inventory $4,800

Cr. Bramble ( Account Payable) $4,800

Step-by-step explanation:

Merchandise Inventory is an asset account and due to debit nature of assets Merchandise Inventory account is debited to add the value in this account. On the other hand Merchandise Inventory is purchased from Bramble a supplier, so its account is credited in order to create a liability against the purchase on credit.