Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Salmon Company purchased merchandise worth $4,000 from Beige Company on account, with prepaid freight of $150. Which of the following journal entries records the

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Salmon Company purchased merchandise worth $4,000 from Beige Company on account, with prepaid freight of $150. Which of the following journal entries records the purchase of merchandise by Salmon assuming that it uses the perpetual inventory system? O a. A debit to Purchases and Freight out for $4,000 and $150 respectively and a credit to Accounts Payable, Beige Company for $4,150 O b. A debit to Purchases for $4,150 and a credit to Accounts Payable, Beige Company for $4,150 c. A debit to Merchandise Inventory for $4,150 and a credit to Accounts Payable, Beige Company for $4,150 d. A debit to Merchandise Inventory and Freight In for $4,000 and $150 respectively and a credit to Accounts Payable, Beige Company for $4,150

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster

4th edition

1405888202, 978-0273711490, 273711490, 978-1405888202

More Books

Students also viewed these Accounting questions