Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction?
A) Cash, debit; Common Stock, credit
B) Accounts Payable, debit; Cash, credit
C) Accounts Receivable, debit; Cash, credit
D) Accounts Payable, debit; Accounts Receivable, credit

Question

Quizplus · Accepted Answer

When cash is paid to creditors on account, it means that the business is reducing its accounts payable balance. Therefore, the entry should be a debit to Accounts Payable and a credit to Cash.

Cash Was Paid by Janer's Cleaning Service to Creditors on Account