Record the Journal Entries for the Following Transactions

question 85

Essay

Record the journal entries for the following transactions:
1.
March 10: 500 units of raw materials were purchased on account at $4.00 per unit.
2.
March 15: 250 units of raw materials were requisitioned at $4.50 per unit for production,Job 872.
3.
March 25: 215 units of raw materials were requisitioned at $5.00 per unit for production,Job 879.

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Definitions:

Credit Balance

The amount that appears on the right side of a ledger account, indicating that a liability has increased or an asset has decreased.

Debt Ratio

The debt ratio is a financial ratio that compares a company's total debt to its total assets, indicating the proportion of a company's funding that comes from debt.

Total Assets

Total assets refer to the sum of all current and non-current assets owned by a company, reflecting the total resources available for use.

Total Liabilities

Total liabilities refer to the sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and mortgages.