If a firm purchases $1,000 of inventory on credit,this should have the following change on the balance sheet:

Question

Quizplus · Accepted Answer

When a firm purchases $1,000 of inventory on credit, it means that they have bought inventory but not yet paid for it. This increases the inventory balance by $1,000 (as they have the goods in their possession), and also increases the accounts payable balance by $1,000 (as they owe the money for the goods but have not yet paid). Therefore, the correct answer is C.

If a Firm Purchases $1,000 of Inventory on Credit,this Should