On 18 November Pinecrest Physio Inc. pays $2,000 in cash to the supplier of the treatment table bought on account on 4 November. Record the payment.
On 18 November Pinecrest Physio Inc. pays $2,000 in cash to the supplier of the treatment table bought on account on 4 November. Record the payment.
Answer
Dr Accounts Payable 2000; Cr Cash 2000
Accounts - Accounts Payable - Cash - Equipment - Supplies Expense **Accounts Payable** (liability down — debit) and **Cash** (asset down — credit). **Supplies Expense** is the trap for a learner who reads "supplier" as "supplies" — nothing was consumed; a debt was paid. **Equipment** is wrong because the table was recorded at its full 3,800 on 4 November; paying for it does not add to the asset.
Hermanson Vol 1 ch 2 (posting with running balances; the trial balance); Dauderis & Annand §2.3–2.4 (concept map C8, C9)