Question

Toys R Fun purchased $4,000 of merchandise for resale and paid immediately. To record this transaction, Toys R Fun's accountant would debit the __________ account and credit the _________ account.

Answer 1

Answer:

Debit Merchandise Inventory and Credit Cash

Explanation:

You made a purchase of merchandise that was paid now so that would increase your merchandise inventory.  Cash is credited because you paid them cash and you cash account decreased.