Help Plz! ACCOUNTING?

Question

Purchased food supplies from super market on account. (Is that a food supplies expense or food supplies)

Paid super market on account. (Is it food supplies expense or food supplies)

I'm entering these in a General Journal.

Thank you very MUCH!

Answer 1

If you have an Asset account titled "Food Supplies," then that means that these supplies are inventoried and accounted on a periodic basis.  For that reason, you should debit the asset "Food Supplies," and credit "A/P."

When paying the account, you debit "A/P," and credit cash.  The "Food Supplies" used will be expensed at the end of the period via an Adjusing Entry that will debit "Food Supplies Expense," and credit "Food Supplies."

I hope this is clear.  If not, repost, and try again.  Good luck!

Answer 2

my opinion it would be general expenses or supply expenses.