Question

Perez Manufacturing purchased raw materials worth $ 4 comma 000 on account. The journal entry to record the purchase of raw materials on account is​ ________. Process costing is used. A. debit Raw Materials​ Inventory, $ 4 comma 000​; credit​ Cash, $ 4 comma 000 B. debit​ Cash, $ 4 comma 000​; credit Raw Materials​ Inventory, $ 4 comma 000 C. debit Raw Materials​ Inventory, $ 4 comma 000​; credit Accounts​ Payable, $ 4 comma 000 D. debit Account​ Payable, $ 4 comma 000​; credit Raw Materials​ Inventory, $ 4 comma 000

Answer 1

Answer:

C. debit Raw Materials​ Inventory, $ 4 comma 000​; credit Accounts​ Payable, $ 4 comma 000

Explanation:

The journal entry to record the raw material purchased on the account is as follows

Raw material inventory A/c Dr $4,000

         To Account payable A/c $4,000

(Being the raw material is purchased on account)

Since the raw material is purchased, the same is increased the current asset so it would be debited while the account payable is credited as it also increased the current liabilities account