24E-c - Horngren'S Financial And Managerial Accounting

Question

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.

c. Purchased raw materials on account, $24,000.

Step-by-Step Solution

Answer

Date	Particulars	Debit ($)	Credit ($)
	Raw material inventory	24,000
	Accounts payable		24,000

Step-by-Step Solution: Step 1: Raw material

Raw material is defined as the input used by the company for manufacturing the goods of the company. 

Step 2: Recording of purchases of raw material in the books of the company

The raw material purchased by the company on account is recorded by debiting the raw material inventory account and crediting the accounts payable account.