Question

question 5 of 7
a company pays a $435 electric bill using an automatic ach withdrawal. what columns would be used in the cash disbursements journal to record this transaction?
select an answer from the options below.
a accounts payable, cash
b purchases, cash
c other accounts, cash
d other accounts, accounts payable

Explanation:

When a company pays an electric bill (which is not a regular accounts - payable item like inventory purchases on credit) using an automatic ACH withdrawal, it is not related to Accounts Payable (which is for credit purchases) or Purchases (which is for inventory or goods bought). The electric bill is an expense that falls under "Other Accounts" (as it is a general non - accounts - payable expense). And since cash is being disbursed, the "Cash" column is also used.

Answer:

C. Other Accounts, Cash