Asked by
Abrar 5600011
on Oct 16, 2024
Verified
The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.
Supplies
Items that are used in the operation of a business but do not directly enter into the finished product.
Accounts Payable
Money owed by a company to its suppliers or creditors for goods and services received.
Credit
Refers to the provision of goods or services with the expectation of future payment, or an accounting entry that increases liabilities or decreases assets.
- Ascertain the characteristics and approaches to treating different account classifications, like assets, liabilities, equity, revenues, and expenses.
- Absorb the basic understanding of debits and credits and their contribution to account balances.
Verified Answer
HJ
Learning Objectives
- Ascertain the characteristics and approaches to treating different account classifications, like assets, liabilities, equity, revenues, and expenses.
- Absorb the basic understanding of debits and credits and their contribution to account balances.