Richardson,Inc.purchased raw materials worth $800 for cash.The journal entry to record this transaction will include ________.Process costing is used.

Question

Quizplus · Accepted Answer

Since the purchase was made for cash, it will be recorded as a debit to Raw Materials Inventory (an asset account) for $800 and a credit to Cash (another asset account) for $800. This is because the materials are coming into the company and are being added to its inventory, increasing its value.