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A Company Paid $2,500 for Supplies Purchased Earlier in the Month

Question 44

Multiple Choice

A company paid $2,500 for supplies purchased earlier in the month on account.In transaction analysis,how does this transaction affect the accounting equation?


A) Add $2,500 to Supplies account and add $2,500 to Supplies Expense account.
B) Add $2,500 to Supplies Expense account and subtract $2,500 from Cash account.
C) Add $2,500 to Supplies Expense account and add $2,500 to Cash account.
D) Subtract $2,500 from Accounts Payable account and subtract $2,500 from Cash account.

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