What is the normal balance of the Supplies account?

• A. Asset
• B. Debit
• C. Credit
• D. Liability

Answer: (B)

Assets have a normal debit balance, and Supplies is a current asset. That means increases to Supplies are recorded on the debit side, while decreases are on the credit side. When you buy more supplies, you debit Supplies to reflect the asset increase. When you use supplies, you credit Supplies to show the reduction, often debiting an expense labeled Supplies Expense. So the normal balance for the Supplies account is a debit. For example, adding $100 of supplies on account would debit Supplies and credit Accounts Payable; using $60 of supplies would credit Supplies and debit Supplies Expense.