A business purchases inventory for $220,paying $50 cash and owing the rest.The journal entry will include:

Name: A business purchases inventory for $220,paying $50 cash and owing the rest.The journal entry will include:
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Question

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The correct journal entry for purchasing inventory on account (owing the rest) includes a debit to inventory for the total amount ($220) and a credit to accounts payable for the amount owed ($170). The cash payment does not affect the accounts payable directly in this transaction.

A Business Purchases Inventory for $220,paying $50 Cash and Owing