soledad corporation had $36,000 of raw materials on hand on december 1. during the month, the corporation…

soledad corporation had $36,000 of raw materials on hand on december 1. during the month, the corporation purchased an additional $71,000 of raw materials. the journal entry to record the purchase of raw materials would include a\na) debit to raw materials of $107,000.\nb) credit to raw materials of $107,000.\nc) debit to raw materials of $71,000.\nd) credit to raw materials of $71,000.

soledad corporation had $36,000 of raw materials on hand on december 1. during the month, the corporation purchased an additional $71,000 of raw materials. the journal entry to record the purchase of raw materials would include a\na) debit to raw materials of $107,000.\nb) credit to raw materials of $107,000.\nc) debit to raw materials of $71,000.\nd) credit to raw materials of $71,000.

Answer

Brief Explanations:

When raw materials are purchased, the "Raw Materials" account (an asset account) is increased. Asset accounts have a normal debit balance. The amount of the purchase is $71,000. So, we debit the Raw Materials account for the amount of the purchase. The beginning balance of raw materials ($36,000) is not relevant for the journal entry to record the purchase.

Answer:

C. debit to Raw Materials of $71,000.