Question

What is the correct entry for a $100 purchase of supplies on credit? A. Debit Cash: $100 & Credit Supplies: $100 B. Debit Accounts Payable: $100 & Credit Cash: $100 C. Debit Supplies: $100 & Credit Accounts Payable: $100 D. Debit Accounts Payable: $100 & Credit Supplies: $100 E. Debit Accounts Receivable: $100 & Credit Cash: $100

Answer 1

Answer:

c. Debit supplies $100 & Credit Account payable $100

Explanation:

Preparation of Journal entry for for a $100 purchase of supplies on credit

Since we were told that the amount of $100 purchased of supplies was made on credit which means that the correct entry will be :

Dr Supplies 100

Cr Account payable 100