The purchase of goods on credit for later resale would affect the following accounts:
A) Bank, Cost of sales
B) Inventory, Bank
C) Payables, Inventory
D) Cost of sales, Payables

Question

Quizplus · Accepted Answer

Purchasing goods on credit for resale affects the Payables account because the company owes money for the goods purchased, and the Inventory account because the goods purchased are added to the company's inventory.

The Purchase of Goods on Credit for Later Resale Would