The company purchases raw materials for $20,000 on account, the entry is: A debit to Raw Material Inventory $20,000 and a credit to Cash $20,000 A debit to Direct Material $20,000 and a credit to Accounts Payable $20,000 A debit to Raw Materials Inventory $20,000 and a credit to Accounts Payable $20,000 O None of the above

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The company purchases raw materials
for $20,000 on account, the entry is:
A debit to Raw Material Inventory
$20,000 and a credit to Cash $20,000
A debit to Direct Material $20,000 and
a credit to Accounts Payable $20,000
A debit to Raw Materials Inventory
O $20,000 and a credit to Accounts
Payable $20,000
None of the above
Transcribed Image Text:The company purchases raw materials for $20,000 on account, the entry is: A debit to Raw Material Inventory $20,000 and a credit to Cash $20,000 A debit to Direct Material $20,000 and a credit to Accounts Payable $20,000 A debit to Raw Materials Inventory O $20,000 and a credit to Accounts Payable $20,000 None of the above
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