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19 July, 04:47

March 1, 2014 Cardullo's purchased an order of German chocolate from a supplier for $250, but didn't pay cash for the order until March 31, 2014. How would you record this transaction at the time of the purch

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  1. 19 July, 05:28
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    Dr Inventory Purchases $250

    Cr Trade Payables $250

    Explanation:

    At the time of the purchase, Inventory purchases which is an asset in nature has been increased and hence must be debited by $250 and similarly the Payable has been increased which is liability in nature and hence must be credited with $250. The entry would be as under:

    Dr Inventory Purchases $250

    Cr Trade Payables $250
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Home » Business » March 1, 2014 Cardullo's purchased an order of German chocolate from a supplier for $250, but didn't pay cash for the order until March 31, 2014. How would you record this transaction at the time of the purch
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