Is inventory debit or credit?
Understand the Problem
The question is asking about the accounting treatment of inventory, specifically whether it is considered a debit or a credit in the accounting entries.
Answer
Inventory is normally a debit balance accounting entry.
Inventory is normally a debit balance accounting entry.
Answer for screen readers
Inventory is normally a debit balance accounting entry.
More Information
Inventory is classified as an asset on the balance sheet, and like all assets, it typically has a debit balance.
Tips
A common mistake is to consider inventory as an expense or a liability, which would typically have credit balances.
Sources
- Debits and Credits: A Brief Explanation - accountingcoach.com
- Inventory Accounting - accountingtools.com
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