On October 10,a company paid $12,000 to its suppliers,of which $2,000 was for supplies received on October 10 and $10,000 was for supplies received and recorded during September.The $12,000 payment would be recorded as a:
A)$10,000 debit to Supplies,a $2,000 debit to Accounts Payable,and a $12,000 credit to Cash.
B)$12,000 debit to Supplies and a $12,000 credit to Cash.
C)$12,000 debit to Supplies Expense and a $12,000 credit to Cash.
D)$2,000 debit to Supplies,a $10,000 debit to Accounts Payable,and a $12,000 credit to Cash.

Question

Quizplus · Accepted Answer

The payment of $12,000 includes $2,000 for supplies received on October 10 and $10,000 for supplies received and recorded during September. Therefore, $2,000 should be debited to Supplies and $10,000 should be debited to Accounts Payable. The full payment of $12,000 should be credited to Cash. This results in a journal entry of a $2,000 debit to Supplies, a $10,000 debit to Accounts Payable, and a $12,000 credit to Cash. Option D is the only choice that includes these accounts in the correct amounts.

On October 10,a Company Paid $12,000 to Its Suppliers,of Which