A transaction has been recorded in the general journal of Todd Company as follows: Which of the following could be an explanation for this transaction?
A)Incurred supplies expense
B)Purchased supplies on account
C)Used supplies
D)Purchased supplies with cash

Question

A transaction has been recorded in the general journal of Todd Company as follows:  Which of the following could be an explanation for this transaction?
A)Incurred supplies expense 
B)Purchased supplies on account 
C)Used supplies 
D)Purchased supplies with cash

Quizplus · Accepted Answer

The transaction code "TB8394_00" indicates that supplies were purchased on account, which would be recorded as a credit to accounts payable and a debit to supplies.

A Transaction Has Been Recorded in the General Journal of Todd