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what would be the double entry for this statement
purchase of goods for resale on creditI think it means to say:
Purchase on credit of goods for resale, so:
Dr Purchases, Cr Payables
When these goods are later sold for cash or on credit, that will be an entirely separate transaction and the double entry will either be:
Dr Cash Cr Sales (for a cash sale), or
Dr Receivables Cr Sales (for a credit sale).
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