Cash was paid by Ari's Alarm Service to creditors on account. Which of the following entries for Ari's Alarm Service records this transaction?
A) Cash, debit; Ari Fleish, Capital, credit
B) Accounts Payable, debit; Cash, credit
C) Accounts Receivable, debit; Cash, credit
D) Accounts Payable, debit; Account Receivable, credit

Question

Quizplus · Accepted Answer

This transaction involves payments to creditors, which indicates a decrease in the accounts payable balance. As a result, the accounts payable account should be debited, and cash account should be credited.

Cash Was Paid by Ari's Alarm Service to Creditors on Account