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Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is a. Accounts Payable190,000 Materials190,000 b. Materials165,000 Accounts Payable165,000 c. Materials190,000 Cash190,000 d. Materials190,000 Accounts Payable190,000

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Answer: d. Materials190,000 Accounts Payable190,000

Explanation:

The goods were purchased ON Account meaning that they were credit sales.

Since they were Credit sales that would mean that the Company now has Creditors (Account Payables).

The correct Journal Entry would therefore be to DEBIT the materials (Asset) account with $190,000 and CREDIT the Accounts Payable Account by the same amount to show that it was a credit purchase.

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