Question

To record the purchase of supplies for cash, the correct entry in the accounting equation would include an increase to (equipment/cash/supplies) ________ and a decrease to (e/c/s) __________

Answer 1

Answer:

The answer is increase supplies and decrease cash

Explanation:

The correct entry is to:

Dr Supplies

Cr Cash

To debit supplies account means to increase it while to credit cash means decrease cash account.

Note:

Increase in asset and expense(debit side) while decrease in asset and expense(credit side)

Decrease in income, equity and liability(debit side) while increase in income, equity and liability( (credit side)