Question

Wiley Consulting purchased $7,800 worth of supplies and paid cash immediately. Which of the following general journal entries will Wiley Consulting make to record this transaction? Assume the company’s policy is to initially record prepaid and unearned items in balance sheet accounts.

Answer 1

Supplies 7,800 debit

Cash 7,800 credit

Step-by-step explanation:

It will increase their supplies valuation by the amount purchased, the suppliesexpense will be recognize over time by comparing the book value with the current existence at the end of the period.

Becasue it was paid, you use cash account.