the good morning shop purchased merchandise on account from the donut plant for $300. the journal entry for…

the good morning shop purchased merchandise on account from the donut plant for $300. the journal entry for the good morning shop to record this transaction is: a. debit accounts payable/the donut plant, $300; credit purchases, $300. b. debit accounts receivable/the donut plant, $300; credit purchases, $300. c. debit purchases, $300; credit accounts payable/the donut plant, $300. d. debit purchases, $300; credit accounts receivable/the donut plant, $300.

the good morning shop purchased merchandise on account from the donut plant for $300. the journal entry for the good morning shop to record this transaction is: a. debit accounts payable/the donut plant, $300; credit purchases, $300. b. debit accounts receivable/the donut plant, $300; credit purchases, $300. c. debit purchases, $300; credit accounts payable/the donut plant, $300. d. debit purchases, $300; credit accounts receivable/the donut plant, $300.

Answer

Answer:

C. debit Purchases, $300; credit Accounts Payable/The Donut Plant, $300.

Explanation:

Step1: Understand the transaction

The Good Morning Shop bought merchandise on account.

Step2: Analyze debit - side

Purchases increase, so Purchases account is debited for $300.

Step3: Analyze credit - side

Since it's a purchase on account, a liability (Accounts Payable to The Donut Plant) is created and credited for $300.