Question

Record the entry for situation 1 to record the purchase of supplies. Outline the accounting entry for the purchase of supplies in situation 1.

Answer 1

The accounting entry for the purchase of supplies in situation 1 involves debiting the Supplies account and crediting the Accounts Payable or Cash account.

Step-by-step explanation:

Accounting Entry for the Purchase of Supplies in Situation 1:

The accounting entry for the purchase of supplies in situation 1 would involve debiting the Supplies account and crediting the Accounts Payable or Cash account.

• Debit: Supplies
• Credit: Accounts Payable

This entry records the increase in the Supplies asset and the corresponding increase in the liability owed to the supplier.