The Journal Entry to Record the Purchase of $7,500 of Inventory

Multiple Choice

The journal entry to record the purchase of $7,500 of inventory on account under the perpetual inventory system is:

A) debit Inventory, $7,500; credit Cash, $7,500.
B) debit Purchases, $7,500; credit Accounts Payable, $7,500.
C) debit Inventory, $7,500; credit Accounts Payable, $7,500.
D) debit Cost of Goods Sold, $7,500; credit Inventory, $7,500.