Question

Michelle Sanchez paid $100 for pet supplies purchased on account from Feed and Farm Store. How would you journalize this transaction?

Credit Accounts Payable, Feed and Farm Store $100 on the first line and debit Cash $100 on the second line. Add "payment on account" on the third line.
Credit Cash $100 on the first line and debit Accounts Payable, Feed and Farm Store $100 on the second line. Add "payment on account" on the third line.
O Debit Accounts Payable, Feed and Farm Store $100 on the first line and credit Cash $100 on the second line. Add "payment on account on the third line.
Debit Cash $100 on the first line and credit Accounts Payable, Feed and Farm Store $100 on the second line. Add "payment on account on the third line.

Answer 1

To journalize the transaction, debit Accounts Payable and credit Cash for $100, noting 'payment on account'.

Step-by-step explanation:

To journalize the transaction of Michelle Sanchez paying $100 for pet supplies purchased on account from Feed and Farm Store, you would debit the Accounts Payable, Feed and Farm Store account for $100 and credit the Cash account for $100.

The journal entry would look like this:

1. 
   
3. Debit Accounts Payable, Feed and Farm Store $100
4. 
   
6. Credit Cash $100

Additionally, you would add the note 'payment on account' to provide further context about the transaction.