On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. The remainder of the bill went on account. To record this transaction on 6/25: Supplies would be increased by $ (1,000/400/600); Cash would be decreased by $ (1,000/400/600) and Accounts Payable would be increased by $ (1,000/400/600).

Question

Aidan

Business

3 May, 06:07

On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. The remainder of the bill went on account. To record this transaction on 6/25: Supplies would be increased by $ (1,000/400/600); Cash would be decreased by $ (1,000/400/600) and Accounts Payable would be increased by $ (1,000/400/600).

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Aditya Barron · Answer 1

Supplies would be increased by $1,000

Cash would be decreased by $400

Accounts Payable would be increased by $600

Explanation:

Given that

Supplies costing = $1,000

Out of which $400 is paid by cash

And, the remaining amount i. e

= $1,000 - $400

= $600

This remaining amount would be on account i. e account payable

Since cash is paid so it decreased by $400 and supplies is purchased for $1,000 that means supplies increases by $1,000 and account payable is also increased by $600