Your business purchased supplies of $2,500 on account . The journal entry to record this transaction as follows, is it A,B, C or D??



A. Inventory Accounts payable
B. Accounts payable supplies
C. Supplies Accounts receivable
D. Supplies Accounts payable

Sorry this is an edit I didn't read the question right

Supplies debit 2500 - accounts payable credit 2500
Because supplies goes up (inventory) and has a normal debit balance as an asset, and as a liabilitiy with a credit balance the money you oew ( A.P.) goes up as well