Question

On October 10, a company paid $12,000 to its suppliers, of which $2,000 was for supplies received on October 10 and $10,000 was for supplies received and recorded during September. The $12,000 payment would be recorded as a:

-$10,000 debit to Supplies, a $2,000 debit to Accounts Payable, and a $12,000 credit to Cash.
-$12,000 debit to Supplies and a $12,000 credit to Cash.
-$12,000 debit to Supplies Expense and a $12,000 credit to Cash.
-$2,000 debit to Supplies, a $10,000 debit to Accounts Payable, and a $12,000 credit to Cash.

Answer 1

The $12,000 payment would be recorded as a $10,000 debit to Supplies, a $2,000 debit to Accounts Payable, and a $12,000 credit to Cash.

Step-by-step explanation:

The $12,000 payment would be recorded as a:

1. $10,000 debit to Supplies
2. $2,000 debit to Accounts Payable
3. $12,000 credit to Cash

This is because the company paid $2,000 for supplies received on October 10 and $10,000 for supplies received and recorded during September. The debit to supplies is an increase in the supplies account, representing the cost of the supplies received. The debit to accounts payable reduces the amount the company owes to its suppliers, and the credit to cash shows the decrease in the company's cash balance.