Question

Purchasing office supplies on account for $100 is recorded as: a. Supplies 100 Accounts Payable 100 b. Cash 100 Supplies 100 c. Supplies 100 Cash 100 d. Accounts Payable 100 Supplies 100 Multiple Choice Option b Option a Option d Option c

Answer 1

Answer: A. Supplies 100 Accounts Payable 100

Step-by-step explanation:

It should bw noted that the purchase of supplies on account has to be recorded with a debit to supplies and a credit to the account payable.

Therefore, with regards to the question, the journal entry will be:

Debit Supplies $100

Credit Account payable $100

In this case, there'll be an increase in the supplies balance and an increase in the accounts payable as well.

Hence the correct option is A