Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a:

Question

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When purchasing office supplies on credit, the company is essentially promising to pay the supplier at a later date, creating a liability known as Accounts Payable. Therefore, the journal entry must include a credit to Accounts Payable to reflect the increase in the liability. Additionally, there should be a debit to office supplies (or the expense account used to track office supply purchases) to reflect the increase in expenses. The other answer choices do not accurately reflect the transaction.

Wisconsin Rentals Purchased Office Supplies on Credit