A business purchased office supplies of $10,000 using a note.The business would:
A)debit Supplies for $10,000 and credit Accounts Payable for $10,000.
B)debit Supplies for $10,000 and credit Notes Payable for $10,000.
C)debit Note Receivable for $10,000 and credit Supplies for $10,000.
D)debit Note Receivable for $10,000 and credit Supplies Expense for $10,000.

Question

Quizplus · Accepted Answer

The business would debit Supplies to increase the asset account and credit Notes Payable to record the liability created by the note.

A Business Purchased Office Supplies of $10,000 Using a Note