The company paid cash of $1,500 on its account with one of its suppliers from whom it regularly purchases inventory. the inventory purchase itself was recorded previously. which one of the following would be included in the journal entry necessary to record this payment on account?
a debit to accounts payable for $1,500
b credit to inventory for $1,500
c debit to inventory for $1,500
d debit to cash for $1,500
e credit to accounts payable for $1,500

The following cost and inventory data are taken from the accounting records of mason company for the year just completed: costs incurred: direct labor cost $ 90,000 purchases of raw materials $ 134,000 manufacturing overhead $ 205,000 advertising expense $ 45,000 sales salaries $ 101,000 depreciation, office equipment $ 225,000 beginning of the year end of the year inventories: raw materials $ 8,100 $ 10,300 work in process $ 5,900 $ 21,000 finished goods $ 77,000 $ 25,800 required: 1. prepare a schedule of cost of goods manufactured. 2. prepare the cost of goods sold section of mason company’s income statement for the year.