Campus Computers purchased some semi-finished goods for $9,000, paid $5,000 in cash, and will pay the remaining amount next month. What is the journal entry for the purchase?
Inventory (A) (inc) $4,000
…Accounts Payable (L) (inc) $4,000
Inventory (A) (inc) $9,000
…Cash (A) (dec) $5,000
…Accounts Payable (L) (inc) $4,000
Inventory (A) (inc) $5,000
…Cash (A) (dec) $5,000
Inventory (A) (inc) $9,000
…Cash (A) (dec) $9,000
Correct answer. The increase in Inventory, an Asset account, should be debited on the left side. The decrease in Cash, an Asset account, should be credited on the right side with the appropriate dollar amount. The increase in Accounts Payable, a Liability account, should be credited on the right side with the appropriate dollar amount.
