Paying a previously recorded invoice from a supplier (of supplies) involves:
A) Debiting Supplies and crediting Cash
B) Debiting Accounts Payable and crediting Cash
C) Debiting Supplies and crediting Accounts Payable
D) Debiting Cash and crediting Supplies
E) None of the above

Question

Quizplus · Accepted Answer

When you pay a previously recorded invoice from a supplier, you are settling an outstanding liability. This means you reduce your Accounts Payable (a liability account) with a debit and decrease your Cash (an asset account) with a credit.

Paying a Previously Recorded Invoice from a Supplier (Of Supplies)