Question

Wisconsin rentals purchased office supplies on credit. the general journal entry made by wisconsin rentals will include a: group of answer choices

a. debit to accounts payable.
b. debit to accounts receivable.
c. credit to cash.
d. credit to accounts payable.
e. credit to wisconsin rentals, capital.

Answer 1

The journal entry for Wisconsin Rentals purchasing supplies on credit includes a debit to Office Supplies and a credit to Accounts Payable, reflecting the obligation to pay in the future.

Step-by-step explanation:

When Wisconsin Rentals purchases office supplies on credit, the proper general journal entry will include a debit to increase the Office Supplies account, which is an asset account, and a credit to increase Accounts Payable, which is a liability account.

The correct journal entry is:

• Debit Office Supplies (increases the asset)
• Credit Accounts Payable (increases the liability)

This transaction reflects the acquisition of supplies without immediate cash payment, creating an obligation to pay the supplier in the future, hence the credit to Accounts Payable.