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What is the entry when merchandise has been received but not the vendor's invoice?

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What is the entry when merchandise has been received but not the vendor's invoice?
posted Jun 30, 2017 by Vijay

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1 Answer

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If you received merchandise, but have not received the vendor's invoice by the end of the accounting period, you need to 1) debit Purchases (periodic method) or debit Inventory (perpetual method) for the cost of the goods or merchandise received, and 2) credit Accounts Payable. You also need to include the merchandise in your physical inventory.

When the vendor's invoice is received and processed, be sure to reverse (remove) the above entry.

answer Jul 1, 2017 by Swati Tyagi
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