A business purchased inventory for $15 000,paying $8 000 cash and the balance of $7 000 due at the end of the following month.The debit and credit entries are:

Question

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The business has purchased inventory and paid $8,000 cash, so we will debit the inventory account for $15,000 and credit the cash account for $8,000. The remaining $7,000 is still due and will be recorded as an accounts payable, which is a liability account. Therefore, we will debit the accounts payable account for $7,000. The entries are:
Debit Inventory $15,000
Credit Cash $8,000
Credit Accounts Payable $7,000

A Business Purchased Inventory for $15 000,paying $8 000 Cash