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

Question

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Wisconsin Rentals purchased office supplies on credit, which means they owe money to the supplier, and thus, there is an increase in their accounts payable. Therefore, the journal entry must include a debit to Accounts Payable. Additionally, since they did not pay for the supplies and incurred a liability, there is no credit to cash or retained earnings, and a credit to Accounts Payable is required to complete the transaction. Therefore, the best choice is D, a credit to Accounts Payable.

Wisconsin Rentals Purchased Office Supplies on Credit