Final answer:
The journal entry for purchasing raw materials on account involves debiting the Raw Materials account and crediting the Accounts Payable account by the purchase amount, which reflects an increase in both assets and liabilities.
Step-by-step explanation:
To record the purchase of raw materials on account, you need to make the following journal entry:
Dr. Raw Materials $375,000
Cr. Accounts Payable $375,000
This entry increases the Raw Materials asset account and the Accounts Payable liability account by $375,000. Since the materials are purchased on account, cash is not exchanged at the time of purchase. Consequently, the Accounts Payable account is credited indicating that the company has an obligation to pay the supplier in the future.