Office supplies were sold by Ari's Alarm Service at cost to another repair shop, with cash received. Which of the following entries for Ari's Alarm Service records this transaction?

Question

Quizplus · Accepted Answer

The transaction involves a sale of office supplies for cash, so Cash should be debited for the amount received and Office Supplies should be credited to record the reduction in inventory. There is no mention of Accounts Payable, so option B and D can be eliminated. Option A is incorrect because it incorrectly shows Office Supplies as a debit, which would increase inventory rather than reduce it.

Office Supplies Were Sold by Ari's Alarm Service at Cost