When Using A Perpetual Inventory System And You Are Journalizing Purchases And S
When using a perpetual inventory system and you are journalizing purchases and sales, The purchase of merchandise on account on one date the material is recorded as a Merchandise inventory DR and Accounts payable as CR. If an allowance is given on a later date, is it recorded as Accounts payable DR and Merchandise Inventory CR, or is there a separate Returns and Allowances category for the CR? (and why or why not?)
Its a silly question, but I can argue it either way. ( I think…)
🙂
