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    Question

    The journal entry for the purchase of inventory on

    credit would be:
    A Debit Inventory, Credit Accounts Payable Correct Answer Incorrect Answer
    B Debit Inventory, Credit Accounts Receivable Correct Answer Incorrect Answer
    C Debit Cash, Credit Inventory Correct Answer Incorrect Answer
    D Debit Accounts Payable, Credit Inventory Correct Answer Incorrect Answer

    Solution

    When inventory is purchased on credit, inventory is debited (increased) and accounts payable is credited (increased). This reflects the acquisition of inventory on credit, and the obligation to pay the supplier in the future is recorded under accounts payable.

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