I am having trouble with this problem (although I know it must be simple to answer!). Someone please, please help!!

If your company purchased supplies on credit, hwo would you record this journal entry?

Then when you make a partial payment to your credit account, how would you record that entry? :confused:

Thank you in advance for any and all help!!

Quote:

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Originally Posted by Heaven7401

I am having trouble with this problem (although I know it must be simple to answer!). Someone please, please help!!!

If your company purchased supplies on credit, hwo would you record this journal entry?

Then when you make a partial payment to your credit account, how woudl you record that entry? :confused:

Thank you in advance for any and all help!!!

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Merchandise inventory... $$$$$
Accounts payables... $$$$$
Bought suplies in credit terms? exam.(1/10 n/30)
Accounts payable... $$$$
Interest expense... $$$$ if any
Cash... $$$$$
Partial payment for the payable at?

If you are not working withy interest there is no need for interest expense

Sorry this answer quickly does not give the format right just credit accounts payable in the first entry and credit cash in the second one

Quote:

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Originally Posted by student 101

merchandise inventory....................$$$$$
accounts payables............................$$$$$
bought suplies in credit terms ??exam.(1/10 n/30)
accounts payable......................$$$$
interest expense.......................$$$$ if any
cash..........................................$$$$ $
partial payment for the payable at ??

if you are not working withy interest there is no need for interest expense

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He is buying supplies not onventory
Dr.Supplies
Cr.Accounts payable
----------------------------------
To record the partial payment,
Cr.Accounts Payable (for the partial payment)
Dr.Cash
------------------------------------
Now lets assume that he is really buying inventory then the entries will be
Dr.Merchandise Inventory
Cr.Accounts Payable
---------------------------------
When you do the partial payment
Dr.Accounts payable (for the partial payment)
Cr.Cash
----------------------------------
Lets say that for some strange reason you received a discount for the partial payment then you would record
Dr.Accounts payable (for the amount of the partial payment)
Cr.Merchandise inventory (for the amount of the discount received)
Cr.Cash (for the partial payment less the discount)