Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 33 - No. 18)

If a company purchases inventory on credit, which accounts are affected?

Debit Inventory, Credit Cash

Debit Cash, Credit Inventory

Debit Inventory, Credit Accounts Payable

Debit Accounts Payable, Credit Inventory

Inventory increases (debit) and Accounts Payable increases (credit).