In basic journal entry terms, what is the correct accounting entry when 75.00 dollars worth of supplies are purchased on account from a supplier?

Introduction / Context:
Recording routine journal entries correctly is a fundamental accounting skill. This question focuses on how to record the purchase of supplies on account, meaning on credit, which introduces both an asset and a liability without any immediate cash movement.

Given Data / Assumptions:
- Supplies worth 75 dollars are purchased from a supplier.
- The phrase on account indicates that the company has not yet paid cash and instead owes the supplier.
- Supplies are initially treated as an asset that will be used in operations later, not as an immediate expense at the time of purchase under a simple periodic system.

Concept / Approach:
When supplies are purchased on credit, the Supplies account increases, showing that the company now has more materials on hand. This is a debit entry to Supplies. Because payment has not yet been made, a liability is created in Accounts Payable. This is a credit entry. The total debits and credits must both equal 75 dollars, keeping the accounting equation in balance.

Step-by-Step Solution:
Step 1: Identify the accounts involved. The company receives supplies, so the Supplies asset increases. It also incurs a liability to the supplier, so Accounts Payable increases.
Step 2: Apply the rule that increases in asset accounts are recorded as debits. Therefore, Supplies must be debited for 75.
Step 3: Apply the rule that increases in liability accounts are recorded as credits. Therefore, Accounts Payable must be credited for 75.
Step 4: Write the journal entry as Debit Supplies 75; Credit Accounts Payable 75.

Verification / Alternative check:
If you later pay the supplier, you would Debit Accounts Payable and Credit Cash, which clears the liability and reduces cash. The original entry must therefore have credited Accounts Payable and not debited it, otherwise the later payment entry would not make sense. This cross check confirms the sign of the entries.

Why Other Options Are Wrong:
Option B is reversed and would wrongly reduce the liability and record an expense instead of recognising an asset. Option C assumes cash was paid, which contradicts the words on account. Option D records a revenue, which is not relevant when you are buying supplies, and also incorrectly increases cash instead of creating a liability.

Common Pitfalls:
Students often confuse purchases on account with payments in cash. Another common error is to expense supplies immediately even when the policy is to treat them as an asset until used. Being clear about whether the transaction affects cash and whether it creates a future obligation is crucial in journal entry questions. Practising such problems helps avoid sign reversals and account selection mistakes.

Final Answer:
Correct option: Debit Supplies 75; Credit Accounts Payable 75.