Question

Gullett Corporation had $28,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $77,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

Answer 1

The journal entry is as follows:

Step-by-step explanation:

The journal entry for recording the purchase of the raw materials is as follows:

Raw material A/c......................Dr $77,000

Cash A/c................................Cr $77,000

The raw materials which were purchased during the month amounts to $77,000, the account of raw material will be debited as the raw material is increasing. And the cash is going out of the business, and any decrease in asset is credited. So, the cash account will be credited.