What is the correct entry for a $100 purchase of supplies on credit?
2 answers:
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Answer:
Cash Account (debit) 1,000
Cash in Bank Account (Credit) 1,000
Explanation:
Given
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Write a journal entry
In this case:
The company deposits $1000.
This means that, $1000 will be debited from the company's cash account.
So, the entry for that will be:
Cash Account (debit) 1,000
In the same vein, $1000 will be credited into the company's bank account.
So, the entry for that will be:
Cash in Bank Account (Credit) 1,000