26.0k views
5 votes
Alicia Tax Services paid $680 to settle an account payable. Which of the following general journal entries will Alicia Tax Services make to record this transaction?

1) Debit Accounts Payable $680, Credit Cash $680
2) Debit Cash $680, Credit Accounts Payable $680
3) Debit Accounts Receivable $680, Credit Cash $680
4) Debit Cash $680, Credit Accounts Receivable $680

User Zerocog
by
8.4k points

1 Answer

6 votes

Final answer:

Alicia Tax Services will make a journal entry with a debit to Accounts Payable for $680 and a credit to Cash for $680.

Step-by-step explanation:

The correct general journal entry that Alicia Tax Services will make to record the transaction of paying $680 to settle an account payable is:

Debit Accounts Payable $680

Credit Cash $680

This entry reflects the decrease in the Accounts Payable account by $680 and the decrease in the Cash account by the same amount.

User Vincenza
by
8.9k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.