Question

The journal entry for receipt of inventory for purchased for cash in a perpetual inventorey system would be

Answer 1

The journal entry for the receipt of inventory purchased for cash in a perpetual inventory system is a debit to inventory and a credit to cash.

Step-by-step explanation:

In a perpetual inventory system, when inventory is purchased for cash, the journal entry records the increase in inventory and the decrease in cash. The entry is as follows:

Debit: Inventory

Credit: Cash

For example, let's say you purchased $1,000 worth of inventory for cash. The journal entry would be:

Debit: Inventory - $1,000

Credit: Cash - $1,000

Answer 2

The journal entry for receipt of inventory purchased for cash in a perpetual inventory system would be (a): Jan 1: Merchandise Inventory 1,500; Accounts Payable 1,500.

How is a perpetual inventory system journal entry done?

In a perpetual inventory system, inventory levels are tracked continuously throughout the accounting period.

When you receive inventory purchased on credit, you increase the value of your inventory by debiting the Merchandise Inventory account.

To represent the liability you incur because of the purchase on credit, you credit the Accounts Payable account.

Hence, Jan 1: Merchandise Inventory 1,500; Accounts Payable 1,500 is the correct reflection of the double-entry accounting principle for recording inventory purchases on account in a perpetual system.

Question completion:

The proper journal entry to record the receipt of inventory purchased on account in a perpetual inventory system would be:

a. Jan 1: Merchandise Inventory 1,500; Accounts Payable 1,500

b. Jan 1: Office Supplies 1,500, Accounts Payable 1,500

c. Jan 1: Purchases 1,500; Accounts Payable 1,500

d. Jan 1: Purchases 1,500; Accounts Receivable 1,500