Terry Company purchased supplies for $7,000 on credit on January 1. On January 15, they made a cash payment of $2,000 to the supplier, and signed a one -year note for the remaining amount to settle the account.
Terry Company's journal entry on January 15 will include:
A) Debit Notes Payable for $5,000
B) Credit Accounts Payable for $5,000
C) Credit Notes Payable for $5,000
D) Debit Cash for $5,000

Question

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The Answer of Terry Company purchased supplies for $7,000 on credit on January 1. On January 15, they made a cash payment of $2,000 to the supplier, and signed a one -year note for the remaining amount to settle the account.
Terry Company's journal entry on January 15 will include:
A) Debit Notes Payable for $5,000
B) Credit Accounts Payable for $5,000
C) Credit Notes Payable for $5,000
D) Debit Cash for $5,000

Terry Company Purchased Supplies for $7,000 on Credit on January