Your company purchased $50,000 in inventory with $5,000 cash and the rest on account. Which journal entries will you make?

Select an answer:

• Decrease Cash by $5,000 with a debit; increase Inventory $50,000 with a debit; and increase Accounts Payable $45,000 with a credit.

• Decrease Cash by $5,000 with a credit; increase Inventory $50,000 with a credit; and increase Accounts Payable $50,000 with a debit.

• Decrease Cash by $5,000 with a credit; increase Inventory $50,000 with a debit; and increase Accounts Payable $45,000 with a credit.

• Decrease Cash by $5,000 with a debit; increase Inventory $50,000 with a credit; and increase Accounts Payable $45,000 with a debit.