The official business definition of Debit Inventory Credit Accounts Payable is an accounting transaction that involves the recording of a purchase of inventory with a vendor using Accounts Payable. This debit/credit transaction shows the increase of inventory and the corresponding increase in Accounts Payable. In this transaction, the debit to Inventory reflects the increase in the company’s inventory, while the credit to Accounts Payable reflects the increase in the company’s liability. This type of transaction is commonly used when a company purchases merchandise from a vendor on credit terms. When the purchase is recorded, the accounts payable is increased and the inventory is increased. The business must then pay the vendor the amount due, which is recorded by a decrease in accounts payable and a corresponding decrease in cash. This Debit Inventory Credit Accounts Payable transaction is important to businesses as it records the purchase of inventory and the corresponding increase in company liabilities. It also helps