Jenny bought supplies on the last day of an accounting period and made payment o
ID: 2330470 • Letter: J
Question
Jenny bought supplies on the last day of an accounting period and made payment on the same day. The following information is extracted from the invoice:
Which of the following is the correct treatment of this transaction in the journal?
a.A debit to Supplies for $130 and a credit to Accounts Payable for $130.
b.A debit to Supplies for $130 and a credit to Cash for $130.
c.The transaction will be recorded in the next accounting period.
d.A debit to Supplies for $15 and a credit to Cash for $15.
Quantity Description Unit Price Amount 12 boxes Ink pen $5 $60 7 boxes Pencil $10 $70Explanation / Answer
ANSWER B
Supplies $130
Cash $130
(being purchase of supplies for cash)
Even though the transaction and payment incurred on last date of accounting period it will be recorded on same accounting period