Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 16 - No. 39)
If a company purchases office supplies on credit, what is the correct journal entry?
Debit Office Supplies, Credit Cash
Debit Cash, Credit Office Supplies
Debit Office Supplies, Credit Accounts Payable
Debit Accounts Payable, Credit Office Supplies
Explanation
The Supplies (an asset) increases (debit), and Accounts Payable (liability) increases (credit).
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