Question

cincinnati supply, co. is a local supplier to the kraft heinz company, which is the third - largest food and beverage company in north america and the fifth - largest food and beverage company in the world. cincinnati supply, co. purchased $7,000 worth of supplies and paid cash immediately. which of the following general journal entries will cincinnati supply, co. make to record this transaction?

accounts payable 7,000
supplies 7,000

supplies 7,000
accounts payable 7,000

supplies expense 7,000
accounts payable 7,000

cash 7,000
supplies 7,000

supplies 7,000
cash 7,000

Explanation:

When a company purchases supplies and pays cash immediately, the asset account 'Supplies' increases (debit) and the asset account 'Cash' decreases (credit). Debiting supplies records the acquisition of the asset, and crediting cash shows the outflow of cash for the purchase.

Answer:

Supplies 7,000 (Debit)
Cash 7,000 (Credit)
So the correct option is the one with Supplies debited for 7,000 and Cash credited for 7,000. Among the given options, the last one:
Supplies 7,000
Cash 7,000
is the correct journal - entry. So the answer is the last option.