Question

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Answer 1

15)

The correct answer is "e. None of the above".

Supporting explanations:

Inventory Account is a current asset account and always has debit balance, an increase in inventory account is indicated with debit and a decrease in inventory account is indicated with credit.

Accounts Payable Account is a current liability account and always has credit balance, an increase in accounts payable account is indicated with credit and a decrease in accounts payable account is indicated with debit.

When inventory is purchased for $1,000, the inventory account is increased due to new inventory so it is debited and accounts payable account is also increased due to new debt, so it is credited.

Therefore, the correct journal entry in Quick Books software tool is shown below -

Date	Account Titles and Explanation	Debit	Credit
	Inventory	$1,000
	Accounts Payable		$1,000
	(To record the purchase of inventory on account)