Adidea Corp regularly buts merchandise from vendors. It just purchased 1,000 units on credit from one of its vendors. How will the company record this transaction

Question

asked Jul 10, 2022 206k views

1 Answer

Sheri · Answer 1 · 2022-07-15T03:24:26+0000

Answer:

You did not include the price they bought the units at.

I will assume this price is $5.

= 5 * 1,000

= $5,000

Recording it will be:

Account Debit Credit

Merchandise Inventory $5,000

Accounts Payable $5,000