Financial Accounting Fundamentals | Online Course Support

Campus Computers purchased inventory for $28,000 and will pay the $28,000 next month. What is the journal entry for the purchase?


Inventory (A) (inc) $28,000

…Cash (A) (dec) $28,000


Inventory (A) (inc) $28,000

…Accounts Payable (L) (inc) $28,000


Inventory (A) (dec) $28,000

…Accounts Payable (L) (dec) $28,000


Accounts Payable (L) (inc) $28,000

…Inventory (A) (inc) $28,000


Correct answer. The increase in Inventory, an Asset account, should be debited on the left side. The obligation to pay leads to an increase in Accounts Payable, a Liability account, and the increase of liabilities should be credited on the right side with the appropriate dollar amount.

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