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Web2. Purchased merchandise inventory on account. 3. Returned merchandise purchased on account. 4. Sold merchandise inventory for cash. Label the revenue recogisition 4a and … The accounting records will show the following bookkeeping entries when the business makes a cash purchase of goods: See more Debit – What came into the business The goods came into the business and will be held as part of inventory until sold. Credit – What went out of the business Cash went out of the business with the cash purchase. See more The Accounting Equation, Assets = Liabilities + Capitalmeans that the total assets of the business are always equal to the total liabilities plus the equity of the business This is true at any time and applies to each … See more Another double entry bookkeeping example for you to discover. 1. Cash Advance Received From Customer See more WebNov 22, 2024 · A business can make a cash sale of inventory or services to a customer. The goods or services are supplied to the customer and payment is immediate using either … giese rental property cranmore shores