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View Full Version : Purchases versus Merchandise Inventory, beginning


angeliken
May 31, 2008, 08:57 AM
When is Purchases and Merchandise Inventory Beginning credited? Please cite an example transaction. How would you extend this to the worksheet?

morgaine300
May 31, 2008, 07:13 PM
Depends entirely on what method you're using. Since you're using a Purchases account, it sounds like you may be doing the periodic method, something not used much anymore. It also sounds like you may be referring to doing an end-of-period adjusting entry. But you've pulled this out of context, so I'm not sure.

It also sounds a bit like a homework question. (The way it is worded is not how most people talk.) If it is, first see our guidelines about posting homework:

https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html