Are my entries into my journal the correctly labeled accounts (sup exp)because my textbook answers say wrong account name but right $ amount?
My schooling program for accounting says my journal name entries are wrong but my $ amounts are correct to the debit and credit side of the financial reporting.
2a/b) Purchased $3,800 of supplies on account on April 15. At year-end, $160 of supplies remained on hand.
- olliverLv 61 month ago
DR: Supplies expense 3640
CR: Supplies on Hand 3640
- SumDudeLv 71 month ago
[ I cannot read your attachment. ] "on account" is a liability until the bill is paid (cancelling the liability and cr cash). Supplies are an asset that gets used up over time (expensed), until $160 worth left. Follow those hints / suggestions, do some work, and come back if needed.