Asked by
Raquel Tovar
on Nov 14, 2024Verified
At January 31 2016 the balance in Bigelow Inc.'s supplies account was $780. During February Bigelow purchased supplies of $900 and used supplies of $1150. At the end of February the balance in the supplies account should be
A) $530 debit.
B) $1030 debit.
C) $530 credit.
D) $830 debit.
Supplies Account
An account used in accounting to track the amount spent on supplies that have not yet been used or consumed by the business.
Debit
An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.
Credit
An entry on the right side of a ledger account, representing an increase in liabilities or equity or a decrease in assets; in a broader sense, also refers to the provision of resources by a creditor to a borrower.
- Identify the impact of buying supplies on credit.
Verified Answer
GS
Learning Objectives
- Identify the impact of buying supplies on credit.