Question

Timmons Corporation purchases office supplies for $350 cash. How would this transaction be recorded? Multiple Choice Debit Inventory $350, credit Cash $350 Debit Cash $350, credit Inventory $350 Debit Supplies $350, credit Cash $350 Debit Cash $350, credit Supplies $350 Incorrect

Answer 1

Answer:

Debit Supplies $350, credit Cash $350

Explanation:

The journal entry for the purchase of supplies is shown below:

Office supplies A/c Dr               $350

   To Cash A/c                                                      $350

(Being the office supplies are purchased for cash)

Since the office supplies are purchased for cash which means the supplies are increased and the cash balance is decreased.

That's why we debited the supplies account and credited the cash account.