On the last day of the current month,a company paid $12,000 to its suppliers,of which $2,000 was for supplies received on the last day of the current month and $10,000 was for supplies received during the previous month.The $12,000 payment would be recorded as a:

Question

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The $2,000 payment for supplies received on the last day of the current month would be recorded as a debit to Supplies, while the $10,000 payment for supplies received during the previous month would be recorded as a debit to Accounts Payable. The total amount of the payment, $12,000, would be recorded as a credit to Cash. Therefore, option D is the correct answer.

On the Last Day of the Current Month,a Company Paid