QuestionJune 18, 2025

Which of the following is debited when inventory is purchased on account? Inventory Accounts Payable Accounts Receivable

Which of the following is debited when inventory is purchased on account? Inventory Accounts Payable Accounts Receivable
Which of the following is debited when
inventory is purchased on account?
Inventory
Accounts Payable
Accounts Receivable

Solution
4.1(249 votes)

Answer

Inventory Explanation 1. Identify the account affected by purchase When inventory is purchased, the Inventory account increases. 2. Determine the accounting entry The increase in Inventory is recorded as a debit to the Inventory account.

Explanation

1. Identify the account affected by purchase<br /> When inventory is purchased, the Inventory account increases.<br /><br />2. Determine the accounting entry<br /> The increase in Inventory is recorded as a debit to the Inventory account.
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