I have a few accounting doubts ! What is related selling activity and what is related buying activity?

Question

> What is related selling activity ?
> What is related buying activity ?
> If : On January 30, Tensing Company purchased supplies of $2,000. The supplies were all consumed in February
Then according to me : The supplies should be charged to Supplies Expense in January and no adjusting entry is needed until the supplies are used in February. Is that correct !

Thanks.

THESE ARE THREE SEPARATE QUESTIONS.

Answer 1

Related selling activities would be advertising, marketing, or delivery charges.

Related buying activities would be freight inwards, cargo insurance charges, etc. If you have to fly out to inspect the goods before confirming the purchase, that travel expense is also a buying-related expense. If the item is so specialised that you need a consultant to render a report before you make the purchase, the consultancy fee is another buying-related expense.

On Jan 30, your entry wld be:
Dr Stock of supplies 2,000
Cr Cash or A/cs payable 2,000

On Feb 28, you'd:
Dr Supplies expense 2,000
Cr Stock of supplies 2,000

Answer 2

In January supply was purchase, but not used,
so it's affect buying activity (Cash or A/P and supply inventory).In February you do expense this inventory which will be related to selling activity. Good Luck!