Question: 1. Why is the purchase journal used for journalizing the purchase of merchandise for resale on account only? Why should I put purchases for items

1. Why is the purchase journal used for journalizing the purchase of merchandise for resale on account only? Why should I put purchases for items such as paper towels and supplies on account in the general journal?

2. What is the difference in receiving a credit memo and issuing a credit memo? What does the term allowance mean? Why do vendors offer discounts?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Step 1 : Use the price series for the company to calculate monthly returns. Note that 61 months of price data will generate 60 months of returns. Similarly, use the ECU series to calculate the...

Why is the purchase journal used for journalizing the purchase of merchandise for resale on account only? Why should I put purchases for items such as paper towels and supplies on account in the...

why is the purchase journal used for journalizing the purchase of merchandise for resale on the account only?why should i put purchase for items such as paper towels and suppplies on account in the...

Nakashima Gallery had the following petty cash transactions in February of the current year. Nakashima uses the perpetual system to account for merchandise inventory. Feb. 2 Wrote a $340 check to...

v" Martin is moving into his new space today. The furniture arrives in the morning. The total cost of the desk, large study table, and eight chairs Martin ordered from Frank's Furniture is $726. A...

Do GENERAL JOURNAL Mar22- Mar 31: Required: MONTH END CLOSING AND ADJUSTMENTS 1. Post all items from the general journal as of March 31 to the general ledger if you have not already done so, and...

any help would be great!! In the Murphy Company, sales were $752000, sales returns and allowances were $31000, and cost of goods sold was $418180, The gross profit rate was 79.9%44.4%82.3%42.0%...

Transactions The Green Store General Journal Oct Page 1 2015 Item Description Date Journalise the following ten (10) transactions for The Green Store, a merchandising business owned by S. Redmond....

Mar 25 Mr. Yur-Karte closed the shop today, after taking home a check for $2,690 for his own personal use. T Mar 22 We sold merchandise on account to three new clients: A. Ashe, protective eye...

Given the following information, what is the cost of goods sold? Purchases Inventory, September 1 Administrative expense Rent revenue Selling expense Inventory, September 30 Sales Interest expense...

Matchless Corp. manufactures radios that it uses in several of its products. Management is considering whether to continue manufacturing the radios or to buy them from an outside source. The...

The symbol U represents a nucleus of uranium with nucleon number (mass number) 238 and proton number (atomic number) 92. (a) State the meaning of nucleon number (b) A nucleus of uranium-238 decays to...

Apple, Inc., controls which apps can run on its iPhone software. Apples App Store is a website where iPhone users can find, buy, and download the apps. Apple prohibits third-party developers from...

In 2019, sales information shows that 30% of new cars and light trucks in the United States were leased. Zook Motors in Kane, Pennsylvania, sold 40 cars and light trucks last month, 10 of them were...

Presented below is a statement that appeared about Weyerhaeuser Company in a financial magazine. The land and timber holdings are now carried on the companys books at a mere $422 million. The value...

Determine the present value of $200,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the...

A recent study reported that fewer than half of young adults turn off the water while brushing their teeth. Is the same true for teenagers? To find out, a group of statistics students asked an SRS of...

True / False: According to the NATA position statement, every other organization sponsoring athletic events should have a written Emergency Action Plan that is practiced at least annually. True False

Understand human resources role in performance appraisals

Have a better understanding of a managers role in the employment process and what occurs behind the scenes in human resources

View cross-training as a means for improving employee capability and departmental effectiveness