Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 43 - No. 8)
What is the journal entry when a company buys inventory on credit?
Debit Cash, Credit Inventory.
Debit Inventory, Credit Cash.
Debit Inventory, Credit Accounts Payable.
Debit Accounts Payable, Credit Inventory.
Explanation
Inventory is debited and accounts payable is credited when inventory is bought on credit.
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