Retail

Inventory Purchase — Credit Terms (30 days)

Receiving a stock delivery from a supplier on 30-day credit terms.

Account NameTypeDebit ($)Credit ($)
Merchandise InventoryAsset (+)15,000.00-
VAT Input Tax (16%)Asset (+)2,400.00-
Accounts Payable (Supplier)Liability (+)-17,400.00

💡 Accountant's Note

Inventory arrives and is immediately an asset regardless of when the supplier is paid. VAT on the purchase is a separate recoverable asset, not part of the inventory cost.

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