The journal entry to record the purchase of materials on account is a(n):

• A. Debit to Materials and credit to Accounts Payable
• B. Debit to Materials and credit to Cash
• C. Debit to Accounts Payable and credit to Materials
• D. Debit to Cash and credit to Materials

Answer: (A)

Verified step by step guidance

1. Understand the nature of the transaction: The purchase of materials on account means the company is acquiring materials but has not yet paid for them. This creates a liability (Accounts Payable).
2. Identify the accounts involved: The Materials account represents the inventory or supplies being purchased, and the Accounts Payable account represents the obligation to pay for these materials in the future.
3. Determine the type of account for each: Materials is an asset account, and Accounts Payable is a liability account. Purchasing materials increases the asset, while the obligation increases the liability.
4. Apply the rules of debits and credits: Assets increase with a debit, so Materials will be debited. Liabilities increase with a credit, so Accounts Payable will be credited.
5. Construct the journal entry: Debit the Materials account to reflect the increase in inventory, and credit the Accounts Payable account to record the liability created by the purchase on account.