Grotto Company pays a vendor $900 cash as partial payment for its earlier $1,800 purchase of supplies on credit.How would Grotto record this payment?
A) Debit Supplies by $900 and credit Accounts Payable by $900.
B) Debit Accounts Payable by $900 and credit Cash for $900.
C) Debit Accounts Payable by $900 and credit Supplies by $900.
D) Debit Supplies for $1,800,debit Accounts Payable for $900,and Credit Cash for $900.
E) Debit Supplies for $900,debit Accounts Payable for $900,and credit Cash for $1,800.
Correct Answer:
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