Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 32 - No. 29)
Which journal entry records the purchase of inventory for cash?
Debit Inventory, Credit Accounts Payable
Debit Inventory, Credit Cash
Debit Purchases, Credit Accounts Payable
Debit Cash, Credit Inventory
Explanation
Purchasing inventory increases inventory (debit) and decreases cash (credit).
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