Paid cash for office supplies, $1,000. Which is the correct journal entry?

• A. Debit Supplies; Credit Cash
• B. Debit Cash; Credit Supplies
• C. Debit Office Supplies; Credit Accounts Payable
• D. Debit Prepaid Insurance; Credit Cash

Answer: (A)

When you pay cash for office supplies, you are exchanging one asset (cash) for another asset (office supplies). In double-entry accounting, increases to asset accounts are recorded with debits and decreases with credits. Since office supplies are increasing, you debit the Office Supplies (or Supplies) account. Since cash is decreasing, you credit the Cash account. So the entry for 1,000 is Debit Office Supplies for 1,000 and Credit Cash for 1,000. This reflects acquiring supplies while paying with cash, with total assets remaining the same overall. The other options would either misstate the direction of the cash movement, or apply accounts (like accounts payable or prepaid insurance) that don’t fit paying cash for office supplies.