A company purchased supplies for $400 on account. Prepare the general journal entry. A company purchased supplies for $400 on account. Prepare the general journal entry. DEBIT: Supplies for $400; CREDIT: Cash for $400

Respuesta :

Answer:

Debit supplies for $400

Credit cash for $400

Explanation:

When a company purchase supplies, the asset account will be debited for the full amount while cash account would be credited .

This is because supplies is an asset and assets would usually have a debit balance when they are purchased, whereas cash account would be credited for the corresponding credit entry. Cash account is being credited because its receiving value for the supplies purchased.