Question

To record the purchase of supplies for cash, the correct entry into the accounting equation would include an increase to (Equipment/Supplies/Cash)________ and a decrease to (Equipment/Supplies/Cash)________.

Answer 1

Answer:

An increase to the Supplies and a decrease to the Cash.

Explanation:

The purchase of supplies for cash is a transaction involving two assets that are supplies and cash. As a result of the purchase, the supplies account is debited which means that the balance in supplies account is increasing and an increase in asset is depicted by a debit to the asset account.

On the other hand, the asset account for cash is being credited as the payment for supplies is being made from cash and as a result the balance in cash account will decrease and will be depicted by a credit to cash account.

Answer 2

Answer:

Supplies

Cash

Explanation:

The purchase of supplies would increase supply and inventory. While, cash would be reduced because it was used to fund the purchase