The Beehive Company acquired merchandise inventory costing $10,000 on September 1. The company will not pay for the inventory until October 1. This transaction will affect the Beehive Company by:
A) increasing the Merchandise Inventory account by $10,000 and decreasing the Capital account by $10,000
B) increasing the Merchandise Inventory account by $10,000 and decreasing the Accounts Payable account by $10,000
C) increasing the Merchandise Inventory account by $10,000 and increasing the Capital account by $10,000
D) increasing the Merchandise Inventory account by $10,000 and increasing the Accounts Payable account by $10,000

Question

Quizplus · Accepted Answer

The acquisition of inventory on credit increases the Merchandise Inventory account and also increases the Accounts Payable account, reflecting the obligation to pay for the inventory in the future.

The Beehive Company Acquired Merchandise Inventory Costing $10,000 on September