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Which of the following entries records the acquisition of office supplies on account?

A) Debit Office Supplies, Credit Cash
B) Debit Office Supplies Expense, Credit Accounts Payable
C) Debit Accounts Payable, Credit Office Supplies
D) Debit Cash, Credit Office Supplies Expense

1 Answer

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Final answer:

The correct entry for acquiring office supplies on account is to debit Office Supplies and credit Accounts Payable, reflecting the increase in assets and liabilities respectively.

The correct Option is: B) Debit Office Supplies, Credit Accounts Payable.

Step-by-step explanation:

The correct entry that records the acquisition of office supplies on account is: B) Debit Office Supplies, Credit Accounts Payable.

This is because when office supplies are purchased on account, it means the payment is to be made at a later date. The office supplies become an asset to the company, so the Office Supplies account is debited to increase the asset. Simultaneously, the company incurs a liability because it owes money for these supplies, so Accounts Payable is credited to increase the liability.

The other options are incorrect because they involve immediate payment (option A), misclassify supplies as an expense (option B), or incorrectly reverse the debit and credit (option C and D).

The correct entry to record the acquisition of office supplies on account is option C) Debit Accounts Payable, Credit Office Supplies.

This entry reflects the increase in the company's liability (Accounts Payable) for the supplies received and the corresponding increase in the asset (Office Supplies). It recognizes that the payment for the supplies will be made at a later date.

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