On January 5,Arlington Inc.purchases $23,000 of supplies; payment is not required until February 4.What action should be taken by Arlington Inc.on January 5?
A) No journal entry is required; this transaction should not be recorded until the payment is made.
B) A journal entry that includes a credit to Accounts Payable should be prepared.
C) A journal entry that includes a debit to Accounts Payable should be prepared.
D) A journal entry that includes a debit to Prepaid Expenses should be prepared.
Correct Answer:
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