On July 7, JT Industries purchased supplies of $1,000 for cash. The entry to record the purchase will include

Question

Quizplus · Accepted Answer

Since JT Industries purchased supplies for cash, there will be a decrease in cash and an increase in supplies. Therefore, the entry to record the purchase will include a debit to Supplies (increasing it) and a credit to Cash (decreasing it). Option A is incorrect since there is no credit purchase and no account payable involved. Option B is incorrect since A/R is not involved in this transaction. Option D is incorrect since there is no sale involved and A/R is not affected.

On July 7, JT Industries Purchased Supplies of $1,000 for Cash