If goods are purchased on credit for resale,the accountant:
A) debits inventory and credits debtors.
B) debits creditors and credits inventory.
C) debits inventory and credits shareholders' equity.
D) debits inventory and credits creditors.

Question

Quizplus · Accepted Answer

When goods are purchased on credit for resale, the accountant debits inventory to reflect the increase in assets (the inventory purchased) and credits creditors to record the liability (the amount owed to the supplier).

If Goods Are Purchased on Credit for Resale,the Accountant