a-company-purchases-5000-of-supplies-on-credit-how-does-this-transaction-affect-

Question

A company purchases $5,000 of supplies on credit. How does this transaction affect the accounts?

Accepted Answer

Increase Supplies (Asset) and Increase Accounts Payable (Liability)

Answer

Decrease Supplies (Asset) and Increase Accounts Receivable (Asset)

Answer

Increase Supplies (Asset) and Increase Cash (Asset)

Answer

Increase Supplies (Asset) and Decrease Cash (Asset)

A company purchases \$5,000 of supplies on credit. How does this transaction affect the accounts?