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 Cash.
D) a debit to Supplies and a credit to Cash.

Question

Quizplus · Accepted Answer

When purchasing an asset for cash, the asset account (Supplies) is debited to increase it, and the Cash account is credited to decrease it.

The General Journal Entry to Record the Purchase of an Asset