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Question: 1. Which accounts are affected? Supplies and Accounts Payable-Supply Depot
2. How is each account classified? Supplies is an asset account. Accounts Payable- Supply Depot is a liability account.
3. How is each classification changed? Assets increase. Liabilities increase.
4. How is each amount entered in the accounts? Assets increase on the debit side. Therefore, debit the asset account, Supplies. Liabilities increase on the credit side. Therefore, credit the liability account, Accounts Payable-Supply Depot.
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