On january 14, welsford agency purchased supplies of $500 on account. when the company records the purchase it will include an increase to a : supplies and an increase to accounts payable. b : supplies and a decrease to cash. c : accounts receivable and a decrease to supplies. d : supplies expense and an increase to accounts receivable.

A.

Explanation:

The company should register the debit (increase) to Supplies and the credit (increase) to Accounts Payable.

The affected accounts are:

-Supplies, an inventory account. The amount of purchase must be debit because it is increasing. if it drecrese, there is a credit registration.

-Accounts payable, if the purchase is on account. The amount of purchase must be credit, as an increase. When there is a debit in this account, the debt has been canceled.

-Cash,  if the purchase is an exchange of cash.

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