E-commerce

Inventory Purchase from Supplier (Credit Terms)

Receiving a batch of products from a supplier on 30-day credit terms.

Account NameTypeDebit ($)Credit ($)
Merchandise InventoryAsset (+)5,000.00-
Accounts Payable (Supplier)Liability (+)-5,000.00

💡 Accountant's Note

Inventory is an asset the moment it arrives at the warehouse regardless of when the supplier is paid. The credit terms create a liability to the supplier.

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