Question

Which of the following entries records the acquisition of office supplies on account? a.Accounts Receivable, debit; Office Supplies, credit b.Office Supplies, debit; Accounts Payable, credit c.Cash, debit; Office Supplies, credit d.Office Supplies, debit; Cash, credit

Answer 1

Answer:

The correct answer is letter "B": Office Supplies, debit; Accounts Payable, credit.

Explanation:

Accounts Payable is the amount of the company's total invoices currently waiting to be paid. These invoices are from vendors of products and services that were recently delivered. They are usually due in 15, 30 or 45 days after the company receives the vendors' invoice. The purchase of equipment, machinery, and office supplies are typically credited to this account.

Thus, the acquisition of office supplies must be debited to the office supplies account and credited to accounts payable.