Final answer:
The correct entry to record the payment of an account payable is (D) Debit Accounts Payable; credit Cash, which reflects a decrease in both liability and cash assets.
Step-by-step explanation:
The payment of an account payable is recorded in accounting transactions using a journal entry. When you pay off an account payable, what you are essentially doing is reducing your liabilities (what you owe) and also reducing your assets (since you are parting with cash).
The correct journal entry for the payment of an account payable is: Debit Accounts Payable; credit Cash. This entry reflects that the amount you owed (Accounts Payable) has decreased, while your Cash has also decreased because you've paid out money.
To clarify the options provided:
- (A) Debit Cash; credit Accounts Payable - This is incorrect because you debit an account when you want to increase it (for assets) or decrease it (for liabilities). Since Cash is an asset, debiting it would mean an increase, which is not the case when you pay a bill.
- (B) Debit Accounts Receivable; credit Cash - Not relevant to accounts payable.
- (C) Debit Cash; credit Supplies Expense - This reflects purchasing supplies, not paying off a debt.
- (D) Debit Accounts Payable; credit Cash - This is the correct entry. It decreases both your liability (Accounts Payable) and your asset (Cash).
- (E) Debit Supplies; credit Accounts Payable - This entry corresponds to the purchase of supplies on credit, not the payment of an existing debt.