On October 10, a company paid $36,000 to a supplier. Of that amount, $6,000 was for supplies received on October 10 and $30,000 was for supplies that were purchased on account during September. The journal entry to record the $36,000 payment would include a debit to:

Question

Ireland Banks

Business

19 July, 20:38

On October 10, a company paid $36,000 to a supplier. Of that amount, $6,000 was for supplies received on October 10 and $30,000 was for supplies that were purchased on account during September. The journal entry to record the $36,000 payment would include a debit to:

+3

Answers (1)

Know the Answer?

Roderick Russo · Answer 1

Debit to:

Supplies Inventory $6,000

Trade Payable $30,000

Explanation:

Here the $6,000 payment will increase the Assets of Supplies Inventories and decrease the Assets of Cash. The $30,000 payment will decrease the Liability - Trade Payable and decrease the Assets of Cash.

The Journal is provided as follows:

Supplies Inventory $6,000 (debit)

Trade Payable $30,000 (debit)

Cash $36,000 (credit)