Question

Jones Company purchased $800 in office supplies with cash this year but it will be used up before the end of the year when the financials are prepared. Since it is short lived and will be used up during this accounting period, Jones Company decided to record it as an expense instead of an asset at the time of purchase. The journal entry to record this transaction when Jones Company buys the office supplies would be:

Answer 1

The answer is Debit (Dr) Office supplies account $800

Credit (Cr) Cash Account $800

Step-by-step explanation:

We credit the giver in this case Cash and debit the receiver (Office supplies expense account) with $800 to satisfy the double entry rule.