The journal entry records the purchase of inventory items, debiting each inventory account (nuts, dairy, milk, sugar, and coconuts) for their respective costs and crediting either the cash account or accounts payable for the total purchase amount of $6,500.
Journal Entry:
Date: [Insert Date]
Inventory Purchase:
Debit
Nuts Inventory $1,500
Dairy Inventory $1,200
Milk Inventory $1,800
Sugar Inventory $900
Coconut Inventory $1,100
Credit
Cash or Accounts Payable $6,500
The Complete Question
An inventory list of a retail store includes the following goods and services: nuts, dairy, milk, sugar, and coconut. The quantities in stock are 150 kg of nuts, 200 liters of dairy, 300 cartons of milk, 180 kg of sugar, and 250 coconuts. Prepare a journal entry to record the purchase of these items with a total cost of $6,500, where nuts cost $1,500, dairy $1,200, milk $1,800, sugar $900, and coconuts $1,100.