The entry to record the purchase of supplies on account includes a credit to:
A)Supplies.
B)Accounts Payable.
C)Supplies Expense.
D)Cash.

Question

Quizplus · Accepted Answer

The purchase of supplies on account means that the company is buying supplies on credit, or agreeing to pay for them at a later time. The credit entry is made to Accounts Payable, which represents the amount owed to the supplier for the supplies received. The debit entry would be to Supplies, which represents the asset acquired in the transaction.

The Entry to Record the Purchase of Supplies on Account