The following events pertain to Jasper Corporation:

Using cash-basis accounting,on which date should Jasper record supplies expense?

Question

The following events pertain to Jasper Corporation:

Using cash-basis accounting,on which date should Jasper record supplies expense?

Quizplus · Accepted Answer

According to the cash-basis accounting method, expenses are recorded when the payment is made. In this scenario, Jasper Corporation purchased supplies for $500 on May 9 and paid cash for the same on the same day. Therefore, the supplies expense should be recorded on May 9, the date of payment.

The Following Events Pertain to Jasper Corporation