On October 10,a company paid $12,000 to a supplier.Of that amount,$2,000 was for supplies received on October 10 and $10,000 was for supplies that were purchased on account during September.The journal entry to record the $12,000 payment would include a debit to:
A) Supplies for $10,000, a debit to Accounts Payable for $2,000, and a credit to Cash for $12,000.
B) Supplies and a credit to Cash for $12,000.
C) Supplies Expense and a credit to Cash for $12,000.
D) Supplies for $2,000, a debit to Accounts Payable for $10,000, and a credit to Cash for $12,000.

Question

Quizplus · Accepted Answer

The $2,000 paid for supplies received on October 10 should be debited to the Supplies account, while the $10,000 paid for supplies purchased on account during September should be debited to the Accounts Payable account. The total payment of $12,000 should be credited to the Cash account. Therefore, the journal entry should be: 
Debit Supplies $2,000 
Debit Accounts Payable $10,000 
Credit Cash $12,000

On October 10,a Company Paid $12,000 to a Supplier