Sunday, August 9, 2009

Purchase Raw Materials Journal Entry

Use the following information to record the purchase raw materials in the accounting ledger.
When you receive the ship, you are obligated to pay cash or a agree on paying at a later date

Both transactions require these accounting journal entries to keep the ledger in check.

  1. Increase raw materials inventory with credit
  2. Decrease cash account with debit
  3. Increase accounts payable with credit
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