Your bookkeeper is off for the day and you are trying to figure out what her last entry in the journal could be for.Unfortunately, she only recorded the debit side of the transaction as $4,400 to Accounts Payable.It is possible that this debit could correspond to:
A) A purchase of equipment costing $4,400 on credit.
B) A payment of $4,400 to a supplier to settle a balance due.
C) A $4,400 sale to a customer.
D) A $4,400 issuance of the company's capital stock.

Question

Quizplus · Accepted Answer

Since the debit entry is to Accounts Payable, it is likely that the transaction is in relation to settling a balance with a supplier. This would correspond to option B, where the company pays $4,400 to a supplier to settle a balance due.

Your Bookkeeper Is Off for the Day and You Are