A company paid $2,500 cash to satisfy a previously recorded account payable, the only liability on the books. Assume the company had a $4,000 balance in Cash immediately prior to this transaction. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts. Show ending account balances.

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The Answer of A company paid $2,500 cash to satisfy a previously recorded account payable, the only liability on the books. Assume the company had a $4,000 balance in Cash immediately prior to this transaction. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts. Show ending account balances.

A Company Paid $2,500 Cash to Satisfy a Previously Recorded