A company purchased merchandise inventory on credit for $600 per unit, and later sold the inventory for $800 per unit. The journal entry to record the purchase of inventory included a debit to:

Question

Quizplus · Accepted Answer

The purchase of inventory on credit is recorded by debiting the Inventory account to increase it and crediting Accounts Payable to record the liability.

A Company Purchased Merchandise Inventory on Credit for $600 Per