Question

On January 14, A Company purchased supplies of $900 on account. The entry to record the purchase will include

Answer 1

the complete journal entry should be:

Date

Dr Supplies 900

Cr Accounts payable 900

Step-by-step explanation:

Supplies is an asset account that has a normal debit balance, while accounts payable is a liability account with a normal credit balance. Our accounting system is based on the double entry system where one account must be debited and another one must be credited.