Inventory balance would increase and hence be debited while cash balance would decrease on account of such payment and hence be credited.
Journal:
Inventory a/c...Dr
To cash
Hence the correct option is:
False
A cash payment for purchase of inventory requires a credit to inventory. true or false?
A cash payment for the purchase of inventory requires a credit to inventory . a True False A cash payment for the purchase of inventory requires a credit to inventory. O True False
A credit purchase of office supplies requires a credit to cash. O True False
Q: Cash payment for the purchase of inventory requires credit to inventory. A: True or False (n) Note payable Interest expense Cash $10,000 $ 100 $10,100 (0) $ 200 Cash Accounts receivable $ 200 $ 1,500 (p) Wage expense Cash $ 1,500 Totals $119,650 $119,650 Key ideas: i. A journal is a chronological recording of transactions using debits and credits (debit simply means left, and credit simply means right) ii. Journalizing a transaction is just a fancy way of saying...
The best ending for a credit refusal is to encourage a cash purchase ..TRUE OR FALSE Buffers relate to the sender rather than the receiver ,,TRUE OR FALSE Emphasize I or WE when planning a neutral or good news messages ..TRUE OR FALSE
True or false. freight charges associated with the purchase of inventory are normally included in inventory cost
true or false: is there a moral hazard element in an acquisition transaction with payment in cash?
A cash purchase of of merchandise is recorded with the following entry: OA) debit Inventory; credit Sales OB) debit Cash; credit Inventory OC) debit Inventory; credit Cash OD) debit Cost of Goods Sold; credit Cash
Purchasing inventory on credit increases the book value per share of a retailer. True False
True or False? Bond interest expense is the interest cash payment minus the amount of bond premium amortization.
true or false: An increase in inventory turnover will improve a company’s cash flow