Type of expenditure Account to debit Answer: inventory Example: purchased inventory on account (no marks for sample answer) Paid to purchase a plant site (property that will be used to 1 build a plant). Paid to demolish an old 2 building on the plant site. Paid for paving the parking 3 lot at the plant site. Paid architect fees for the 4 design of the new plant. Freight costs on machinery purchased for use by the 5 company Paid for a one-year insurance 6 policy on a new truck. Installation of a fence 7 around the property Closed out the depreciation expense account at the 8 end of the accounting period