Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 26 - No. 35)

What is the correct journal entry to record the purchase of inventory for cash?

Debit Inventory, Credit Cash

Debit Cash, Credit Inventory

Debit Purchases, Credit Cash

Debit Cash, Credit Purchases

This reflects an increase in Inventory (asset) and a decrease in Cash (asset).