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16 November, 07:33

Sedlor Properties purchased office supplies on account for $800. Which journal entry records the payment on account of those office supplies? (Assume the purchase occurred in a prior period.)

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Answers (2)
  1. 16 November, 08:42
    0
    DR. CR.

    Account Payable $800

    Cash $800

    Explanation:

    The Purchases made in prior period were recorded in as follow

    DR. CR.

    Purchases $800

    Account Payable $800

    A liability was made at the time of purchase. Now it will be paid off by debiting Account payable and crediting cash.
  2. 16 November, 10:36
    0
    Dr Accounts payable 800

    Cr Cash 800

    Explanation:

    The journal entry to record the purchase should have been:

    Dr Office supplies 800

    Cr Accounts payable 800

    Accounts payable is a liability account and therefore has a credit balance. Once the liability is paid, it must be debited so its balance equals $0.
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