Toys R Fun purchased $4,000 of merchandise and paid immediately. To record this transaction, Toys R Fun's accountant would debit theaccount and credit theaccount. A. Cash. B. Merchandise Inventory. C. Accounts Payable.

The answer is:

Debit the Merchandise Inventory account

Credit the cash account.

Explanation:

To start with, increase in assets and expenses go into debit side while decrease in assets and expenses go into credit side.

Merchandise inventory is an asset and cash too is an asset. Toys R Fun purchased inventory with cash, this means merchandise inventory increases while cash decreases.

According to the rule in the first paragraph, the recording is as follows:

Dr Merchandise Inventory $4,000

Cr cash. $4,000