In the Excel,or spreadsheet,approach to recording financial transactions,raw material purchases on account are recorded as increases in the Raw Materials inventory column and decreases in the Accounts Payable column.

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Raw material purchases on account are recorded as increases in both the Raw Materials inventory column and the Accounts Payable column, reflecting an increase in inventory and a corresponding increase in the amount owed to suppliers.

In the Excel,or Spreadsheet,approach to Recording Financial Transactions,raw Material Purchases