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A Company Purchases $23,000 of Supplies in the Current Month

Question 52

Multiple Choice

A company purchases $23,000 of supplies in the current month and promises to pay for them next month.How would the company record a liability for the supplies?


A) This liability is not a recognized liability until the payment is due.
B) $23,000 would be journalized as a credit to Accounts Payable.
C) $23,000 would be journalized as a debit to Accounts Payable.
D) $23,000 would be journalized as a debit to Prepaid Expenses.

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