Abbott Company purchased $6,500 of merchandise inventory on account. Which of the following entries would be required to record this transaction?

Question

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The entry required to record the purchase of merchandise inventory on account is a debit to Inventory and a credit to Accounts Payable. Option B shows this correctly, with a debit of $6,500 to Inventory and a credit of $6,500 to Accounts Payable. Option A is incorrect because it only shows a debit to Inventory; there needs to be a corresponding credit to Accounts Payable. Option C is incorrect because it shows a credit to Inventory, which is not correct when purchasing inventory on account. Option D is incorrect because it shows a credit to Cash, not Accounts Payable, indicating that the purchase was made with cash rather than on account.

Abbott Company Purchased $6,500 of Merchandise Inventory on Account