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In: Accounting

when a vendor invoice is received for office supplies, the following entry is recorded: a. Debit-...

when a vendor invoice is received for office supplies, the following entry is recorded:

a. Debit- accounts payable, credit- office supplies
b. Debit- retained earnings, credit- office supplies
c. Debit- office supplies, credit- accounts payable
d. Debit- office supplies, credit accounts receivable.

Solutions

Expert Solution

Answer : c. Debit- office supplies, credit- accounts payable.

Explanation : Office supplies is a current asset thus when we receive vendor invoice  for office supplies, we debit office supplies as we get ownership of supplies & we need to pay for the supplies to vendor thus we credit accounts payable.  

ekkarill92 answered 2 years ago
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