The journal entry to record the purchase of 7500 of inventor

The journal entry to record the purchase of $7,500 of inventory on account under the perpetual inventory system is: A. debit Inventory, $7,500; credit Cash, $7,500. B. debit Purchases, $7,500; credit Accounts Payable, $7,500. C. debit Inventory, $7,500; credit Accounts Payable, $7,500. D. debit Cost of Goods Sold, $7,500; credit Inventory, $7,500.

Solution

Journal entry for recording purchase of inventory on account will be as follows :-

Merchandise Inventory Dr. $ 7,500

To Accounts Payable. $ 7,500

Option C) is the answer.