Question

Sedlor Properties purchased office supplies on account for $800. Which journal entry records the payment on account of those office supplies?

Debit Credit
A. Accounts Payable 800
Accounts Receivables 800
B. Accounts Payable 800
Cash 800
C. Cash 800
Accounts Payable 800
D. Office Supplies 800
Cash 800

Answer 1

The journal entry to record the payment of office supplies purchased on account by Sedlor Properties is a debit to Accounts Payable for $800 and a credit to Cash for $800, which corresponds to option B.

Step-by-step explanation:

To record the payment on account for the office supplies that Sedlor Properties purchased, the correct journal entry is:

• Debit Accounts Payable $800
• Credit Cash $800

This transaction is captured in the journal entry as

• B. Accounts Payable 800
• Cash 800

Since Sedlor Properties is paying off the liability it had from purchasing the office supplies on account, the Accounts Payable account (a liability account) is decreased by debiting it, and the Cash account (an asset account) is decreased by crediting it.

The correct journal entry to record the payment on account of the office supplies purchased by Sedlor Properties is option C. Cash 800 Accounts Payable 800.

When Sedlor Properties pays for the office supplies on account, it reduces its Accounts Payable (liability) and decreases its cash (asset). So, Accounts Payable will be credited for $800 and Cash will be debited for $800.

This journal entry reflects the decrease in the liability and the decrease in the asset for Sedlor Properties.