In a manufacturing company, the purchase of material on account should be recorded as follows: ...
Question:
In a manufacturing company, the purchase of material on account should be recorded as follows:
a- Raw material inventory - accounts payable
b- Work in process - accounts payable
c- Finished goods inventory - accounts payable
d- Accounts payable - raw materials inventory
Journal Entries:
When a transaction takes place in a business it needs to be recorded in the accounting system through a general journal entry. This involves debits and credits but an accountant must understand the rules of debits and credits to be able to properly prepare an entry. The rules of debits and credits determines how an account is increased or decreased within the accounting system.
Answer and Explanation: 1
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View this answerAnswer choice: a- Raw material inventory - accounts payable
Explanation:
The purchase of material on account for a manufacturing company will be...
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Journal Entries & Trial Balance | Differences & Examples
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Chapter 3 / Lesson 9
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Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.
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