The following events pertain to Jasper Corporation: May 1 Jasper purchased office supplies of $3,000 on account.May 5 The office supplies were shipped to Jasper.May 8 Jasper used these office supplies for a one-time event.May 9 Jasper paid $3,000 cash for the office supplies purchased on May 1.Using cash-basis accounting,on which date should Jasper record supplies expense?
A)May 1.
B)May 5.
C)May 8.
D)May 9.

Question

Quizplus · Accepted Answer

With cash-basis accounting, expenses are recorded when cash is paid. Therefore, Jasper should record supplies expense on May 9 when they paid cash for the office supplies.

The Following Events Pertain to Jasper Corporation: May 1 Jasper