Jones Cleaning Services purchased 12 months' worth of cleaning supplies from Focus on Cleaning. The purchase is for cash and the invoiced amount is $1200. Ignoring GST, the entry that correctly records this transaction is:

Question

Quizplus · Accepted Answer

Since Jones Cleaning Services has purchased 12 months' worth of cleaning supplies on cash, the correct entry to record this transaction is to debit the Cleaning Supplies asset account for $1200 and credit the Bank account for $1200. Therefore, the entry that correctly records this transaction is option C. Option A is incorrect because cleaning supplies are an asset, not an expense. Option B is incorrect because bank is debited implying that the business paid cash for the supplies, but the entry should have a credit to Bank account. Option D is incorrect because cleaning supplies are an asset, so a debit to an expense account is not appropriate.

Jones Cleaning Services Purchased 12 Months' Worth of Cleaning Supplies