Answered

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Richards Corporation purchased and used $75.000 of supplies during August. The purchase was on account, and had not been paid by the end of the month. The appropriate journal entry to completely account for this activity is:

Sagot :

The appropriate journal entry to completely account for this activity is:

Dr. Supplies expense $75,000

Cr. Accounts payable                 $75,000

What does purchase on account mean?

Purchase on account means that supplies whose value is $75,000 was purchased on credit with no cash payment, rather Richards Corporation promises to make payment at a later date.

In other words, we need to debit the increasing account and the fact the supplies have been used means that the  supplies expense account should be debited such that the accounts payable, which indicates that the amount is owed is credited.

Find out more about supplies expense on:https://brainly.com/question/14464248

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