The entry to record the purchase of supplies on account would include a:

Question

Quizplus · Accepted Answer

Since the purchase of supplies is being made on account, it means that the business has not yet paid for the supplies. Therefore, the Accounts Payable account should be credited to record the amount owed to the supplier. This will increase the liability of the business to the supplier. None of the other accounts mentioned are relevant for this transaction.

The Entry to Record the Purchase of Supplies on Account