Question

This month, grass is greener lawn service pays cash for $4,000 of grass fertilizer to be used two months from now. what journal entry will grass is greener record this month?

Answer 1

To record this financial transaction, the Grass is greener SHOULD DEBIT SUPPLIES ACCOUNT FOR $4000 AND CREDIT CASH ACCOUNT FOR $4000.
The supplies account will be debited because the item bought fall into the category of supplies that the company use; the cash account will be credited because the item was paid for in cash.<span />