Which of the following documents associated with the acquisition/payment process is most likely to lead to a journal entry that debits inventory and credits accounts payable?
A)Purchase requisition, purchase order and receiving report
B)Purchase order, receiving report and invoice
C)Purchase requisition, receiving report and invoice
D)None of these

Question

Quizplus · Accepted Answer

The purchase order initiates the purchase, the receiving report confirms that the goods have been received and inventory can be recorded, and the invoice validates the amount owed and serves as the basis for the accounts payable entry. Therefore, a journal entry debiting inventory and crediting accounts payable will typically result from the receipt of the invoice.

Which of the Following Documents Associated with the Acquisition/payment Process