Identify the entry below that records the acquisition of office supplies on account.

Question

Quizplus · Accepted Answer

The entry that records the acquisition of office supplies on account is usually made by debiting Office Supplies and crediting Accounts Payable. This is because the supplies have been received, but payment has not yet been made, so they are recorded as a liability (Accounts Payable) until they are paid for. Choices A and B involve paying for the supplies with cash or on account, respectively, but do not account for the acquisition of the supplies. Choice C would be the reverse of what is usually recorded, with Office Supplies being credited instead of debited.

Identify the Entry Below That Records the Acquisition of Office