Office supplies were sold by Janer's Cleaning Service at cost to another repair shop, with cash received. Which of the following entries for Janer's Cleaning Service records this transaction?

A) Office Supplies, debit; Cash, credit
B) Office Supplies, debit; Accounts Payable, credit
C) Cash, debit; Office Supplies, credit
D) Accounts Payable, debit; Office Supplies, credit

Question

Sadikxa Panta · Accepted Answer

Final Answer : C, Explanation :  The transaction involves the sale of office supplies by Janer's Cleaning Service at cost to another repair shop in exchange for cash. This means that Janer's Cleaning Service received cash and gave up the office supplies, and so cash should be debited and office supplies should be credited. Therefore, the correct entry is Cash, debit; Office Supplies, credit (choice C). Choices A, B, and D all involve incorrect accounts and/or debits/credits.

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