Which of the following transactions will cause a liability to be credited and an asset account to be debited when the perpetual inventory system is in use?
A) Recorded the adjustment for depreciation
B) Recorded the adjustment for the consumption of supplies
C) Purchased merchandise inventory on account
D) Purchased office supplies for cash

Question

Quizplus · Accepted Answer

Purchasing merchandise inventory on account means the company now owes a liability to the supplier (credited), while also increasing their inventory asset (debited).

Which of the Following Transactions Will Cause a Liability to Be