A business paid $1900 on account. The journal entry would:
A)debit Accounts Receivable for $1900 and credit Revenue for $1900.
B)debit Accounts Payable for $1900 and credit Cash for $1900.
C)debit Cash for $1900 and credit Retained Earnings for $1900.
D)debit Cash for $1900 and credit Accounts Payable for $1900.

Question

Quizplus · Accepted Answer

When a business pays on account, it reduces its liability. Therefore, Accounts Payable is debited to decrease the liability, and Cash is credited to reflect the outflow of cash.

A Business Paid $1900 on Account