Red Baron Company purchased supplies for cash, $1,950. The transaction would involve a

Name: Red Baron Company purchased supplies for cash, $1,950. The transaction would involve a
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

When a company purchases supplies for cash, it increases its supplies (an asset) and decreases its cash (also an asset). The correct accounting entry is to debit Supplies (to increase the asset account) and credit Cash (to decrease the asset account). Therefore, the correct answer is a debit to Supplies.

Red Baron Company Purchased Supplies for Cash, $1,950