The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

Name: The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The purchase of supplies on credit increases the amount of supplies on hand, which is recorded as a debit to the Supplies account. At the same time, the company incurs a liability to pay for those supplies in the future, which is recorded as a credit to Accounts Payable.

The Purchase of Supplies on Credit Should Be Recorded with a Debit