O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.On January 1,2014,O'Hare purchased $3,000 of raw materials with cash.The entry to record the purchase of raw materials would:

Question

Quizplus · Accepted Answer

The purchase of raw materials for cash decreases the asset account Cash and increases the asset account Raw Materials Inventory.It is an asset exchange transaction and,as such,has no impact on total assets.

O'Hare Company,is a Manufacturing Firm That Uses a Job-Order Cost