Question: A purchase of supplies for cash is recorded in the?
A purchase of supplies for cash is recorded in the cash disbursements journal. This is a special journal that records all transactions that involve paying cash. The cash disbursements journal has columns for the date, check number, payee, account debited, amount debited, cash credited, and amount credited. When a business buys supplies for cash, it debits the supplies account and credits the cash account. The entry is recorded in the cash disbursements journal as follows:
Date | Check No. | Payee | Account Debited | Amount Debited | Cash Credited | Amount Credited
---- | --------- | ----- | --------------- | -------------- | ------------- | ---------------
Jan 5 | 1001 | ABC Supplies Co. | Supplies | $500 | Cash | $500
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