Wiley Consulting Purchased $7,000 Worth of Supplies and Paid Cash $\begin{array} { | c | r | r | } \hline \text { Accounts Payable } & 7,000 & \\\hline \text { Supplies } & & 7,000 \\\hline\end{array}$

question 137

Multiple Choice

Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately. Which of the following general journal entries will Wiley Consulting make to record this transaction?

• A) \(\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 7,000 & \\
• \hline \text { Supplies } & & 7,000 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 7,000 & \\
• \hline \text { Supplies } & & 7,000 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Supplies } & 7,000 & \\
• \hline \text { Cash } & & 7,000 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | l | r | r | }
• \hline \text { Supplies } & 7,000 & \\
• \hline \text { Accounts Payable } & & 7,000 \\
• \hline
• \end{array}\)
• E) \(\begin{array} { | c | r | r | }
• \hline \text { Supplies Experise } & 7,000 & \\
• \hline \text { Accounts Payable } & & 7,000 \\
• \hline
• \end{array}\)

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Definitions:

Subsidiary Ledger

A detailed ledger supporting a general ledger, containing information on individual accounts like customers or suppliers.

Issued Check

A check that has been written, signed, and released by the drawer but not yet cleared through the banking system.

Advertising Expense

This is the cost associated with promoting products or services to generate sales and increase brand awareness, including media buys, creative costs, and advertising staff salaries.

Cash Receipts

The collection of money (currency, checks, or electronic transfers) by a business from its customers, either for the sale of goods or services or from other sources like investments.