A company purchased merchandise inventory on credit for $600 per unit, and later sold the inventory for $800 per unit. The journal entry to record the purchase of inventory included a debit to:

Question

Quizplus · Accepted Answer

The journal entry to record the purchase of inventory would include a debit to the Inventory account, as this represents a purchase of goods to be sold in the future. Accounts Receivable and Cost of Goods Sold do not come into play here. Accounts Payable would be credited in the journal entry when the company pays off the amount owed for the purchased inventory at a later date.

A Company Purchased Merchandise Inventory on Credit for $600 Per