Questions: Question 6 On January 14, Edamame Industries purchased supplies of 700 on account. The entry to record the purchase will include a debit to Supplies Expense and a credit to Accounts Receivable. a debit to Supplies and a credit to Accounts Payable. a debit to Supplies and a credit to Cash. a debit to Accounts Receivable and a credit to Supplies.

The answer is B: a debit to Supplies and a credit to Accounts Payable.

Explanation for each option:

1. A debit to Supplies Expense and a credit to Accounts Receivable: This option is incorrect. When supplies are purchased on account, the Supplies account is debited to reflect the increase in assets, not Supplies Expense. Accounts Receivable is not involved in this transaction because the purchase is on account, meaning it is a liability, not a receivable.

2. A debit to Supplies and a credit to Accounts Payable: This option is correct. When Edamame Industries purchases supplies on account, the Supplies account is debited to increase the asset account, and Accounts Payable is credited to reflect the liability incurred by purchasing on account.

3. A debit to Supplies and a credit to Cash: This option is incorrect. This entry would be used if the supplies were purchased with cash. However, the question specifies that the purchase was made on account, not with cash.

4. A debit to Accounts Receivable and a credit to Supplies: This option is incorrect. Accounts Receivable is not involved in this transaction because it deals with amounts owed to the company by customers, not amounts the company owes to suppliers. Additionally, crediting Supplies would imply a decrease in supplies, which is not the case here.