Paul's Landscaping paid $500 on account for supplies purchased in the prior month.Which of the following general journal entries will Paul's Landscaping make to record this transaction?

Question

Quizplus · Accepted Answer

Paying on account for previously purchased supplies decreases Accounts Payable (a liability) and decreases Cash (an asset). Therefore, Accounts Payable should be debited to show a decrease in liability, and Cash should be credited to show a decrease in assets.

Paul's Landscaping Paid $500 on Account for Supplies Purchased in the Prior