Corporation Comp Prob Supplies Purchase – 40 Journal Entry Supplies Purchase on Account

Supplies purchase on account for a corporation will record the purchase of supplies with no cash. We will enter the accounting journal entry for supplies in the general journal and then post the accounting transaction to the general ledger, that will be used to generate the trial balance. We will debit the asset supplies and credit the liability of accounts payable. There will be no effect on net income because we have not yet used the supplies and therefore will net expense it in accordance with the matching principle. We will reduce the asset of supplies and record the related expense during the adjusting process.
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