A company buys 200 units of inventory at \$15 per unit on account. Calculate the total value of the purchase and record the transaction.

• A. Total value is \$3,000; Debit Purchases \$3,000; Credit Cash \$3,000
• B. Total value is \$3,000; Debit Purchases \$3,000; Credit Accounts Payable \$3,000
• C. Total value is \$3,000; Debit Inventory \$3,000; Credit Accounts Payable \$3,000
• D. Total value is \$3,000; Debit Accounts Payable \$3,000; Credit Purchases \$3,000

Answer: (B)