Hawk Company purchased $300 of supplies on account.Which of the following shows how this purchase will affect Hawk's ledger accounts?

Question

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Purchasing on account means that the buyer does not pay cash at the time of purchase. Instead the buyer incurs an obligation (accounts payable) to pay cash in the future. When supplies are purchased on account, assets (supplies) and liabilities (accounts payable) increase.

Hawk Company Purchased $300 of Supplies on Account