Answer:
No net affect: There is both an increase in Assets and a decrease in Assets
Explanation:
The journal entry is as follows
Inventory Dr $2,000
To Cash $2,000
(Being the inventory is purchased for cash is recorded)
This journal entry states that the inventory is purchased for cash. The inventory is purchased that increases the asset and on the other side the cash is paid for the purchase of increased which decrease the asset
So, there is no impact on the asset side or accounting equation
