This month, grass is greener lawn service pays cash for $4,000 of grass fertilizer to be used two months from now. what journal entry will grass is greener record this month?
To record this financial transaction, the Grass is greener SHOULD DEBIT SUPPLIES ACCOUNT FOR $4000 AND CREDIT CASH ACCOUNT FOR $4000. The supplies account will be debited because the item bought fall into the category of supplies that the company use; the cash account will be credited because the item was paid for in cash.
