The account distribution for purchases of inventory on account is:
A)Debit Checking and Merchandise Inventory; credit Accounts Receivable/customer.
B)Debit Merchandise Inventory and Accounts Receivable; credit Sales.
C)Debit Accounts Receivable/Customer; credit Accounts Payable/vendor.
D)Debit Merchandise Inventory; credit Accounts Payable/vendor.
E)None.

Question

Quizplus · Accepted Answer

When inventory is purchased on account, Merchandise Inventory is debited to increase the asset, and Accounts Payable is credited to record the liability.

The Account Distribution for Purchases of Inventory on Account Is