Identify the entry below that records the purchase of office supplies on account.
A)debit Office Supplies Expense; credit Accounts Payable
B)debit Office Supplies; credit Cash
C)debit Accounts Payable; credit Office Supplies
D)debit Office Supplies; credit Accounts Payable

Question

Quizplus · Accepted Answer

The entry recording the purchase of office supplies on account would involve increasing the Office Supplies asset account and increasing the Accounts Payable liability account. Therefore, the correct entry is to debit Office Supplies and credit Accounts Payable, which is option D. Option A is not correct because it decreases Accounts Payable instead of increasing it, and Option B is not correct because it involves a cash payment, which is not the case when purchasing on account. Option C is also not correct because it decreases Office Supplies instead of increasing it.

Identify the Entry Below That Records the Purchase of Office