The transaction to record payment for delivery equipment that was purchased on account in the previous month would include
A) debiting Cash and crediting Accounts Receivable.
B) debiting Cash and crediting Accounts Payable.
C) debiting Accounts Payable and crediting Cash.
D) debiting Delivery Equipment and crediting Cash.

Question

Quizplus · Accepted Answer

Since the equipment was purchased on account in the previous month, it means that Accounts Payable was credited when the transaction was recorded. Therefore, to record the payment for the purchase, we would need to debit Accounts Payable to reduce the amount owed and credit Cash to reflect the payment made.

The Transaction to Record Payment for Delivery Equipment That Was