2.2 Analyzing and Recording Transactions The Small Town Bakery purchases MOST of its ingredients from a large distribution warehouse. On July 2 they made a huge purchase costing $4,500. If the journal entry to record this transaction includes a credit to Cash for $500 and a credit for $4,000 to Accounts Payable, it could be said that $500 would be recorded as Supplies Expense, and the rest would be Supplies. O they paid cash for part of the purchase, and the rest was purchased on account. Accounts Payable would be reduced by $4,000. O they incurred a $4,500 supplies expense for the month. Save for Later Submit Answer