Gullett Corporation had $46,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $95,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

Question

Chelsea Valentine

Business

27 September, 09:26

Gullett Corporation had $46,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $95,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

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Nia Cunningham · Answer 1

A debit to raw material of $95,000

Explanation:

Raw material inventory is an asset, due to debit nature of this account an addition in the raw material will require a debit entry in this account and credit to cash / account payable.

The journal entry for purchase of raw material is as follow

General Ledger Dr. Cr.

Raw Material Inventory $95,000

Cash / Account Payable $95,000