E-commerce
Inventory Purchase — Cash Payment
Buying a new product line directly from a manufacturer with immediate cash payment.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Merchandise Inventory | Asset (+) | 8,000.00 | - |
| Cash / Bank | Asset (-) | - | 8,000.00 |
💡 Accountant's Note
Cash purchases of inventory immediately reduce the bank balance and create an asset. The inventory stays on the balance sheet until it is sold, at which point it becomes Cost of Goods Sold.
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