Question

how would you journalize the transaction “paid cash on account” in an expanded journal?

debit accounts payable and credit cash. write the name of the vendor in account title.

debit cash and credit accounts receivable. write the name of the vendor in account title.

debit accounts payable and credit capital. write the name of the owner in account title.

debit cash and credit accounts payable. write the name of the vendor in account title.

Explanation:

When paying cash on account, Accounts Payable (a liability) decreases (debited) as the amount owed to the vendor is reduced, and Cash (an asset) decreases (credited) as cash is used for the payment. The vendor's name is relevant for Accounts Payable.

Answer:

Debit Accounts Payable and credit Cash. Write the name of the vendor in Account Title.