Helen's Home Collection business receives a box of supplies that cost $168. The box came with a packing slip that correctly listed the contents. The packing slip was inadvertently discarded before the bookkeeper entered the transaction. Which of the following is true?

Question

Quizplus · Accepted Answer

When a business receives supplies on account, it increases (debits) the supplies expense or inventory and increases (credits) accounts payable. Losing the packing slip does not affect the recording of the debit (increase in supplies expense or inventory), but it may lead to not recording the corresponding credit to accounts payable, hence the correct answer is that Accounts Payable will be missing a $168 credit.

Helen's Home Collection Business Receives a Box of Supplies That