Why are purchases of merchandise for resale not recorded in the same account as purchases of other

Question:

Why are purchases of merchandise for resale not recorded in the same account as purchases of other items, such as supplies or equipment? Would it not be better to use one account to record all these purchases?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

See More Books

Question Posted: Jan 11, 2017 09:56 AM

See More Questions

Salamah Hijazi, an Egyptian immigrant, founded The Lavender Soap Company (LSC) in Seattle at the end of X1 with a capital at par of $60,000. The business mission of Lavender Soap was to distribute...
Stellar Stores is a new company that started operations on March 1, 2014. The company has decided to use a perpetual inventory system. The following purchase transactions occurred in March: Mar. 1...
Record the return of $500 of the merchandise purchased in BEB-9? Refer to BEB-9 Record the purchase on account of $4,100 of merchandise for resale in the province of New Brunswick, where HST is 13%....
Suppose that In Example 18.6 the electrical firm does not have enough prior information regarding the population mean length of life to be able to assume a normal distribution for p. The firm...
Ren Levin wishes to determine the future value at the end of 2 years of a $15,000 deposit made today into an account paying a nominal annual rate of 12%. a. Find the future value of Rens deposit,...
1. Brooking agreed to sell a tract of land to Dover Pool & Racquet Club, Inc., on which Dover planned to build a swim and tennis club. Neither party to the contract knew that just before the contract...
Although the customer loyalty project at Petrie Electronics had gone slowly at first, the past few weeks had been fast-paced and busy, Jim Watanabe, the project manager, thought to himself. He had...
McEntire Corporation began operations on January 1, 2009. During its first 3 years of operations, McEntire reported net income and declared dividends as follows. The following information relates to...
Use counting to determine the whole number that corresponds to the cardinality of these sets. (a) C = {xlx = N and (x-8)(x-3)=0} (b) D = {x|x EN, 1x 100 and x is divisible by both 6 and 7} (a) n(C) =...
Wild West produces two types of cowboy hats. A type 1 hat requires twice as much labor time as a type 2. If the all available labor time is dedicated to Type 2 alone, the company can produce a total...
Song Yee wonders why a physical inventory count is necessary in a perpetual inventory system. After all, the accounting records show how much inventory is on hand. Explain why a physical inventory...
Butler's Roofing Ltd. received an invoice for a purchase of merchandise for $10,000, terms 1/10, n/30. (a) Calculate the cost of missing this purchase discount to Butler's Roofing. (b) Should it take...
Up-Front Bank is now offering a two-year discount loan for 10%. Working backwards, what are the available funds at the start of the loan and the implied balance at the end of the first year if the...
My dad made $30,000 back in 1995. At that time the CIP was 152.4 . In 2011 I stared my first job. The CIP was 223.47. How much did I make in 2011? Explain step by step in detailed
Image transcription text Question 27 {3 points) Suppose parent B's hourly wage rises to $75. The household's budget constraint implies that household consumption and the number of children must...
Chrome File Edit View History Bookmarks Profiles Tab Window Help PG Campus Unit 4 Lab Assignment - MT2 Do Homework - Unit 4 Lab As Dashboard + Mon Jan 8 1:00 PM...
Below is a bar chart showing the frequencies of ages for Representatives from the states of California (CA) and Florida (FL). Count of state abbrev state abbrev CA FL Less than 72.83 years Between...
a) Use the Quotient Rule to find the derivative of the given function. b) Find the derivative by dividing the expressions first. y= X 7 3 for x = 0
What information is in a connection string?
Use Stokes' Theorem to evaluate f(y+sin x) dx+(z+cos y) dy+rdz, where C is the rve r(t) = (sint, cost, sin 2t), t = [0, 2].
In its first month of operations, Quilt Inc. made three purchases of merchandise in the following sequence: (1) 250 units @ $6 each, (2) 200 units @ $8 each, and (3) 300 units @ $7 each. A physical...
DuPlessis Corporation incorrectly recorded $25,000 of goods held on consignment for another company as a purchase during the year ended December 31, 2011. The physical inventory count agreed with the...
Cody Camera Shop Ltd. reports the following cost and net realizable value information for its inventory at December 31: Instructions (a) Determine the lower of cost and net realizable value of the...
Given the info below answer the question Inventory 12/31/25 $60,100 Cost of Goods Sold $221,463 Common Stock 74,510 Selling Expenses 15,783 Retained Earnings 45,810 Administrative Expenses 37,696...
Greyson Construction has the following account balances at the end of the e year. Accounts Equipment Accounts payable Salaries expense Common stock Land Notes payable Service revenue Balances $24,500...
A. Determine the internal forces at sections C, D1 and D2 2kN/m k 2m C 4m Figure 2 e=0.2m 8kN B D D 2m B. Construct bending moment diagram of the beam shown in figures 15kN 4kN/m B D F E (1) (2)...

Why are purchases of merchandise for resale not recorded in the same account as purchases of other

Question:

Step by Step Answer:

Hence for the final analysis we can say that the reaso...View the full answer

Financial Accounting Tools for Business Decision Making

Students also viewed these Accounting questions