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The proper journal entry to record the purchase of $25,000 of raw materials on a

ID: 2476846 • Letter: T

Question

The proper journal entry to record the purchase of $25,000 of raw materials on account would be:

Jan 2    Raw Material Inventory                       25,000
                    Accounts Receivable                                  25,000

Jan 2    Raw Material Inventory                       25,000
                    Accounts Payable                                       25,000

Jan 2    Inventory                                             25,000
                    Accounts Receivable                                  25,000

Jan 2    Inventory                                             25,000
                    Cash                                                          25,000

Jan 2    Raw Material Inventory                       25,000
                    Accounts Receivable                                  25,000

Jan 2    Raw Material Inventory                       25,000
                    Accounts Payable                                       25,000

Jan 2    Inventory                                             25,000
                    Accounts Receivable                                  25,000

Jan 2    Inventory                                             25,000
                    Cash                                                          25,000

Explanation / Answer

Option 2

Jan 2

         Raw Material Inventory              $25,000

               Accounts payable                                           $25,000

when we purchase on account the accounts payable will increase