1. Grayton Industries purchased supplies for $1,300. They paid $500 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,300, a credit to cash account for $500. Which of the following would be the correct way to complete the recording of the transaction?

a. Credit the Grayton, Capital account for $500.

b. Debit the Grayton, Capital account for $500.

c. Credit an asset account for $800.

d. Credit another liability account for $800.

2. On January 14, Franco Industries purchased supplies of $500. The entry to record the purchase will include

a. a debit to Supplies and a credit to Accounts Payable.

b. a debit to Supplies Expense and a credit to Accounts Receivable.

c. a debit to Supplies and a credit to Cash.

d. a debit to Accounts Receivable and a credit to Supplies.