Long Leaf Company's tabular analysis at the beginning of April consisted of the following balances:
How would Long Leaf record the payment of the total amounts due to its creditors in the tabular analysis?
A) Decrease Cash by $500 and decrease Accounts Payable by $500.
B) Decrease Cash by $500 and decrease Accounts Receivable by $500.
C) Increase Cash by $2500 and decrease Accounts Receivable by $2500.
D) Increase Cash by $2500 and decrease Accounts Payable by $2500.
Correct Answer:
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