Question

You have a receipt for the purchase of supplies. What would the T account look like after analyzing this transaction?

A. Accounts Payable is credited to decrease, and Supplies is debited to increase.

B. Accounts Payable is debited to decrease, and Supplies is credited to increase.

C. Cash is credited to decrease, and Supplies is debited to increase.

D. Cash is debited to decrease, and Supplies is credited to increase.

Answer 1

For a cash purchase of supplies, record a debit to Supplies to increase supplies and credit Cash to decrease cash on the T-account.

Step-by-step explanation:

If you have a receipt for the purchase of supplies, and you paid for these supplies with cash, the appropriate way to record the transaction in a T-account would be to debit the Supplies account to reflect an increase in supplies, and credit the Cash account to reflect a decrease in cash. This means the correct answer is C: Cash is credited to decrease, and Supplies is debited to increase.