Question

first rentals purchased office supplies on credit. the general journal entry made by first rentals will include a: multiple choice debt to accounts payable. debt to accounts receivable. credit to cash. credit to accounts payable. credit to accounts receivable.

Explanation:

When a company purchases office supplies on credit, it increases its liability (Accounts Payable) and its assets (Office Supplies). A credit entry is made to Accounts Payable to record the amount owed to the supplier.

Answer:

D. Credit to Accounts Payable