The general ledger entry to record the purchase of materials is:
A)Debit-Purchases Received Credit-Purchase Orders Outstanding
B)Debit-Materials Credit-Purchase Orders Outstanding
C)Debit-Purchases Received Credit-Accounts Payable
D)Debit-Materials Credit-Accounts Payable

Question

Quizplus · Accepted Answer

When materials are purchased, the account Cash or Accounts Payable is credited (depending on whether cash or credit was used to make the purchase) and the Materials account is debited to record the increase in assets. Therefore, the correct option to record purchase of materials is Debit-Materials Credit-Accounts Payable.

The General Ledger Entry to Record the Purchase of Materials