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Accounting -Business Purchased supplies
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 |
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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 |
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