Explain a transaction that decreases both Accounts Payable and Cash by $1,200.

Question

Want to see the full answer?

Answer 1

Question

Chapter 2, Problem 3CSR

To determine

Explain a transaction that decreases both Accounts Payable and Cash by $1,200.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Martinez Company paid cash dividends of $1,700. Which two accounts are affected? What kind of accounts are they? Do the account balances increase or decrease? Increase Decrease Increase Decrease Do we debit or credit the accounts? Debit Credit Debit Credit

please choose the correct answer 1. At the beginning of the period, a business has a cash balance of ₱20,000. During the period, total cash collections and total cash payments amounted to ₱100,000 and ₱70,000, respectively. How much is the ending balance of cash? A. 10,000B. 30,000C. 50,000D. 70,000 2. Entity A has accounts receivable of ₱500,000 and a related allowance for bad debts of ₱120,000. How much is the carrying amount of the accounts receivable?A. 620,000B.500,000C. 480,000D. 380,000 3. If deposit for lease contract was recorded as Rent Expense,A. expense is understated.B.asset is not affected.C.profit is overstated.D. owner’s equity is understated. 4. Inventory, beg. ₱50,000; Net purchases, ₱120,000; Cost of goods sold, ₱80,000. How much is the Inventory, end.? A. 90,000B. 120,000C. 70,000D. 80,000

Which of the following accounts decreases with a debit? A) notes payable B) cash C) accounts receivable D) rent expense For expenses, the category of account and its normal balance is ______ A) assets and a debit balance B) equity, and a credit balance C) equity, and a debit balance D) assets, and a credit balance Ranger pool company received cash of $40,000 and issued common stock which of the following accounts will be credited? A) cash B) accounts receivable C) common stock D) accounts payable