What business event is represented by a journal entry that shows a debit to supplies of $800 and a credit to accounts payable of $800?
A) The company incurred supplies expense.
B) The company purchased supplies with cash.
C) The company used supplies.
D) The company purchased supplies on account.

Question

Quizplus · Accepted Answer

The journal entry represents a purchase of supplies on account, as evidenced by the credit to accounts payable for the same amount as the debit to supplies. Option A would require a credit to cash, while option B would not have a credit to accounts payable. Option C would only have a debit to supplies with no corresponding credit.

What Business Event Is Represented by a Journal Entry That