Question

choose the answer. how would you journalize the transaction \owner withdrew merchandise for personal use\ in an expanded journal? debit drawing and credit purchases debit cash and credit drawing debit purchases and credit cash debit purchases and credit capital

Explanation:

When the owner withdraws merchandise for personal use, it is a drawing (a reduction in owner's equity). The Merchandise (which is part of Purchases in some accounting set - ups) is being taken out. So, we debit Drawing (as it is an increase in the drawing account, which is a contra - equity account) and credit Purchases (as the asset of merchandise is decreasing).

Answer:

debit Drawing and credit Purchases