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Sedlor Properties purchased office supplies on account for​ $800. Which journal entry records the payment on account of those office​ supplies? ​(Assume the purchase occurred in a prior​ period.)

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hyderali230

Answer:

DR. CR.

Account Payable $800

Cash $800

Explanation:

The Purchases made in prior period were recorded in as follow

DR. CR.

Purchases $800

Account Payable $800

A liability was made at the time of purchase. Now it will be paid off by debiting Account payable and crediting cash.

jepessoa

Answer:

Dr Accounts payable 800

    Cr Cash 800

Explanation:

The journal entry to record the purchase should have been:

Dr Office supplies 800

    Cr Accounts payable 800

Accounts payable is a liability account and therefore has a credit balance. Once the liability is paid, it must be debited so its balance equals $0.

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