Inventory Transactions

Purchase of inventory on credit

• Dr Inventory, Cr GST, Cr Accounts Payable

• Dr Accounts Payable, Cr Inventory, Cr GST

• Dr Inventory, Dr GST, Cr Accounts Payable

• Dr Inventory, Cr Cost of Goods Sold

Purchase of inventory returns

• Dr Inventory, Cr GST, Cr Accounts Payable

• Dr Accounts Payable, Cr Inventory, Cr GST

• Dr Inventory, Dr GST, Cr Accounts Payable

• Dr Inventory, Cr Cost of Goods Sold

Sale of inventory includes the following two GJ entries

• Dr Cost of Goods Sold, Cr Inventory

• Dr Accounts Receivable, Cr Sales, Cr GST

• Dr Inventory, Dr GST, Cr Accounts Payable

• Dr Inventory, Cr Cost of Goods Sold

Drawings of Inventory

• Dr Cost of Goods Sold, Cr Inventory

• Dr Accounts Receivable, Cr Sales, Cr GST

• Dr Drawings, Dr GST, Cr Inventory

• Dr Drawings, Cr GST, Cr Inventory

Inventory increasing is a

• Debit

• Credit

Cost of Goods Sold increasing is a

• Debit

• Credit

Cost of Goods Sold decreasing is a

• Debit

• Credit

Inventory shortage increasing is a

• Debit

• Credit

Drawings of inventory increasing is a

• Debit

• Credit

Accounts Payable decreasing is a

• Debit

• Credit