Purchased Inventory On Account Journal Entry is a business term used to describe the bookkeeping record of inventory received in exchange for a signed invoice. It signifies that the purchase was made with credit and the invoice will be paid at a later date. When recording this journal entry, the accounts that must be debited and credited include: inventory, accounts payable, and cash. This simple entry can help businesses keep track of their outstanding accounts payable and ensure accurate records of inventory levels. By understanding the Purchased Inventory On Account Journal Entry concept and its process, businesses can stay on top of their finances and better manage their resources.