Materials purchased on account during the month totaled $190,000.Materials requisitioned and placed in production totaled $165,000.The journal entry to record the material purchase on account is

Question

Quizplus · Accepted Answer

The journal entry to record the purchase of materials on account is to debit Materials for the cost of materials purchased and credit Accounts Payable for the same amount. Since materials purchased on account during the month totaled $190,000, the journal entry will be:

Materials 190,000
Accounts Payable 190,000

Option A is incorrect because it only reflects the cost of materials requisitioned and placed in production, not the cost of materials purchased on account.

Option C is incorrect because it suggests that the company paid for the materials in cash, but the prompt stated that the materials were purchased on account.

Option D is incorrect because it reverses the debit and credit accounts, which could result in a misstatement of the company's financial statements.

Materials Purchased on Account During the Month Totaled $190,000