How Should a Purchase of Supplies on Account Be Recorded?

When you purchase supplies on account, it means you are buying supplies on credit. This transaction should be recorded in your accounting records as follows:

Debit to Supplies Expense: This increases the supplies expense account, reflecting the cost of the supplies purchased.

Credit to Accounts Payable: This increases the accounts payable account, reflecting the amount you owe to the supplier.

Therefore, the correct entry is:

Debit Supplies Expense and Credit Accounts Payable.

This means the correct answer is:

c) a debit to supplies expense and a credit to accounts payable.

More Related Questions