When purchases of merchandise are made for cash, the transaction may be recorded with the following entry

Name: When purchases of merchandise are made for cash, the transaction may be recorded with the following entry
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When merchandise is purchased for cash, the typical entry would involve debiting Merchandise Inventory to increase the inventory on hand and crediting Cash to record the outflow of cash. Therefore, the correct entry is debit Merchandise Inventory; credit Cash.

When Purchases of Merchandise Are Made for Cash, the Transaction