The general journal entry to record the purchase of an asset for cash would include:
A)a debit to Accounts Receivable and a credit to Fees Earned.
B)a debit to Equipment and a credit to Accounts Payable.
C)a debit to Accounts Payable and a credit to Equipment.
D)a debit to Supplies and a credit to Cash.

Question

Quizplus · Accepted Answer

When purchasing an asset for cash, you debit the asset account (Supplies) to increase it and credit the Cash account to decrease it.

The General Journal Entry to Record the Purchase of an Asset