Making a $350 payment on an account with a current balance of $800 would include a:
A)debit to accounts receivable and a credit to cash for $350.
B)debit to accounts payable and a credit to cash for $450.
C)debit to accounts payable and a credit to cash for $350.
D)debit to accounts receivable and a credit to capital for $350.

Question

Quizplus · Accepted Answer

Making a $350 payment on an account reduces the amount owed, which is recorded as a debit to accounts payable (decreasing the liability) and a credit to cash (decreasing the asset) for the amount of the payment, $350.

Making a $350 Payment on an Account with a Current