Accounting 101?

Question

What would the adjusting entry be for food inventory thats increased by 100?

I think its debit food inventory but what do you credit?

Answer 1

Your cash?

Answer 2

it depends. is it a periodic or perpetual inventory system?

and if it's perpetual, you need to be more specific about the situation. Did you purchase goods for retail? If you did, I think it would be a debit to inventory and credit to cash (or accounts payable).