Question

Alicia Tax Services paid $630 to settle an account payable. Which of the following general journal entries will Alicia Tax Services make to record this transaction?

Multiple Choice
a Debit Office supplies expense. $630: credit Cash, $630.
b Debit Cash. $630. credit Office supplies, $630.
c Debit Office supplies, $630; credit Cash, $630.
d Debit Office supplies. $630, credit Accounts payable, $630.
e Debit Accounts payable $630; credit Cash, $630.

Answer 1

The correct general journal entry for Alicia Tax Services to record the payment of $630 to settle an account payable is to debit Accounts payable and credit Cash.

Step-by-step explanation:

The correct general journal entry for Alicia Tax Services to record the payment of $630 to settle an account payable is option e: Debit Accounts payable $630; credit Cash, $630.

When a company pays off an account payable, the Accounts Payable account is debited to decrease the liability, and Cash is credited to reflect the decrease in cash. In this case, the entry would be: Debit Accounts payable $630; credit Cash, $630.