Paid transport expenses of RM 120 for goods bought from Nelly Ltd ... Which one is debit and which one credit?

Inventory account will debit

Cash account will credit

or

Purchase account will debit

Cash account will credit

Explanation:

It is consider that transportation expense paid on the purchase of goods will consider as the expense of the business. The transportation expense usually increase the inventory will cash paid on inventory consider decrease in assets of business. The use of purchase or inventory depends on accounting policy of organization. The method they use for recording the inventory hence given situation has two possible answer depends of method of recording for Inventory.