Under the purchase method of inventory, which account is debited when supplies are received?

When supplies are received under the purchase method of inventory, the Expenditures account is debited because this method recognizes the cost of supplies as an expenditure at the time they are received rather than when they are used or consumed. This treatment aligns with the cash basis of accounting, reflecting the immediate impact of the transaction on the financial statements.

In this approach, the organization recognizes the expense incurred for the supplies as soon as they are delivered, rather than increasing an inventory asset account. This is particularly relevant for governmental accounting, which emphasizes accountability and the correct recognition of expenses in the period they occur.

In contrast, other accounts mentioned, such as Accounts Receivable, Cash, and Inventory, do not apply in this situation because they either pertain to different transactions or methods of accounting that are not relevant to the purchase method. For example, Accounts Receivable would be involved if a purchase was made on credit, while Cash would represent a payment transaction, and Inventory would be relevant under a different accounting method that tracks inventory items until they are used.