Question

Your bookkeeper is off for the day and you are trying to figure out what her last entry in the journal could be for. Unfortunately, she only recorded the debit side of the transaction as $4,400 to Accounts Payable. It is possible that this debit could correspond to:

a. A purchase of equipment costing $4,400 on credit.
b. A $4,400 issuance of the company's capital stock.
c. A payment of $4,400 to a supplier to settle a balance due.
d. A $4,400 sale to a customer.

Answer 1

A debit of $4,400 to Accounts Payable suggests that the transaction was a payment to a supplier to reduce the amount owed.

Step-by-step explanation:

If a bookkeeper recorded a debit of $4,400 to Accounts Payable, this most likely corresponds to a payment made to a supplier to settle a balance that was due. Accounts Payable is a liability account, and debiting this account decreases its balance, indicating that a payment was made and a liability was reduced. So, the correct answer to what the bookkeeper's last entry could be for is:

c. A payment of $4,400 to a supplier to settle a balance due.

This assumes typical bookkeeping practices where credit would increase Accounts Payable when a purchase is made on credit, and a debit to the same account would indicate a payment or reduction of that liability.