if merchandise is purchased & a down payment is made & the balance on credit what accounts do u debit & credit

Answer 1

Debit either the asset account or inventory, depending on what the merchandise is being used for.

Credit cash (or checking) for the amount of the down payment

The balance should go to Accounts PAYABLE (not receivable) or set up a separate liability account (if it is a credit card or like that).

If you sold the merchandise it would be an entirely different entry.

Answer 2

playing shy's answer is very close.
Actually, I think the error in the answer is just a typo; it should be accounts payable, not accounts receivable.

You disbursed cash, which reduces an asset account, so you
CREDIT CASH

You received merchandise. If this is for a business that is going to sell the merchandise, then it is "inventory" (which is what playing shy assumed). You have increased an asset account, so you
DEBIT INVENTORY

Finally, you have incurred a debt, or liability by putting the balance of the purchase price on credit. This could be accounts payable (as playing shy assumed), or it could be recorded as a loan. In either case, it is a liability. You have increased a liability, so you
CREDIT ACCOUNTS PAYABLE

To make the debits and credits balance, you should have:
CASH PAID + AMOUNT ON CREDIT = VALUE OF MERCHANDISE
This translates to:
CREDIT TO CASH + CREDIT TO ACCOUNTS PAYABLE = DEBIT TO INVENTORY

Answer 3

hi, cellular telephone - credit card Petrol - credit card vehicle expenses - credit card & money procuring - credit card Air tickets - credit card motels - credit card Dinning - credit card & money Small expenses - money credit card fee - cheque or on line cyber web circulate (NEFT/RTGS) Now u r thinking that why I PAY by credit card - I paid constantly after my billing date as I have been given 30days era untill fact generate + get 20days as fee due date is after 20 days of fact era date. Thats ability if I paid something by credit card on a million Apr 2009 then 30 Apr 2009 my bill will generate & could pay my expenditures until at last 20 might 2009 thats ability i can use my money until at last 50days in different issues. notice: on no account ever use you debit card for any procuring as credit card pretend Transaction may be bear in mind as that's a credit facility which financial employer gave you yet as quickly as your money went out out of your DEBIT card, financial employer has no criminal duty to bear in mind/reversal of pretend transaction.

Answer 4

debit inventory
credit cash
credit accounts receivable

At least that's the way we do it! :-)