In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

Question

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In a lean environment, the journal entry to record raw materials purchases typically includes a debit to the raw materials inventory account (to increase the asset) and a credit to accounts payable or cash (to reflect the liability incurred or payment made), not a credit to the raw materials inventory account.

In a Lean Environment, the Journal Entry to Record Raw