Question

chegg A company purchased $21,400 of supplies on credit. The journal entry to record this transaction consists of a:

Answer 1

The journal entry to record this transaction consists of a: debit of the purchases account for $21400 and credit the accounts payable account for $21400

How to enter a transaction in a journal?

We are told that a company purchased $21,400 of supplies on credit.

Now, it is vital to note that in a journal, there is the credit column and also the debit column.

Now, the way we carry out recording the Journal Entry for a Credit Purchase is that;

When a business purchases goods or services on credit, the business will then debit the purchases account, which will increase the business’s assets.

The business will also credit the accounts payable account, which will increase the business’s liabilities.

Thus;

The journal entry to record this transaction consists of a: debit of the purchases account for $21400 and credit the accounts payable account for $21400

Read more about Journal Entry at; brainly.com/question/14279491

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