Which of the following journal entries would be recorded if a business makes a cash payment to a supplier of $750 on account (the business had purchased office supplies on account in the previous month)?

Question

Quizplus · Accepted Answer

When a business makes a cash payment to a supplier on account, it reduces the accounts payable balance. The journal entry to record this transaction would be a debit to accounts payable (to reduce the balance) and a credit to cash (to show the outflow of funds). Option B represents this transaction, with a debit to accounts payable for $750 and a credit to cash for $750.

Which of the Following Journal Entries Would Be Recorded If