Question

Richards corporation paid $3,000 toward an outstanding accounts payable that was previously established when supplies were purchased. The appropriate journal entry to record this transaction is _______.

Answer 1

The appropriate journal entry to record a payment towards an outstanding accounts payable is to debit the Accounts Payable account and credit the Cash account.

To record the payment of $3,000 toward an outstanding accounts payable, the appropriate journal entry would be:

Accounts Payable - $3,000

Cash - $3,000

This entry decreases the accounts payable balance by $3,000 since the payment was made, and decreases the cash balance by the same amount since cash was used for the payment.