Alicia Tax Services paid $500 to settle an account payable.Which of the following general journal entries will Alicia Tax Services make to record this transaction?

Question

Quizplus · Accepted Answer

The transaction involves the payment of an account payable, so the accounts payable account must be credited. The company paid in cash, so the cash account must be debited. The correct journal entry is therefore to debit Accounts payable $500 and credit Cash $500. Option E is the correct choice.

Alicia Tax Services Paid $500 to Settle an Account Payable