Inventory Purchase and Accounts Payable
A bookstore recently placed an order with a supplier for $3567.00. According to double-entry accounting principles, which accounts are affected by this transaction and how?
A
The balance of the asset account Inventory will increase, and the balance of the liability account Accounts Payable will increase.
B
The balance of the asset account Cash will increase, and the balance of the liability account Accounts Payable will increase.
C
The balance of the asset account Inventory will decrease, and the balance of the liability account Accounts Payable will decrease.
D
The balance of the asset account Cash will decrease, and the balance of the liability account Accounts Payable will decrease.
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