33. starz transport paid cash on account to avery aircraft, $995, covering purchase invoice no. 1691. the…

33. starz transport paid cash on account to avery aircraft, $995, covering purchase invoice no. 1691. the journal entry for starz transport to record this transaction is: a. debit accounts payable/avery aircraft, $995; credit cash, $995. b. debit accounts receivable/avery aircraft, $995; credit cash, $995. c. debit cash, $995; credit accounts payable/avery aircraft, $995. d. debit cash, $995; credit accounts receivable/avery aircraft, $995.

33. starz transport paid cash on account to avery aircraft, $995, covering purchase invoice no. 1691. the journal entry for starz transport to record this transaction is: a. debit accounts payable/avery aircraft, $995; credit cash, $995. b. debit accounts receivable/avery aircraft, $995; credit cash, $995. c. debit cash, $995; credit accounts payable/avery aircraft, $995. d. debit cash, $995; credit accounts receivable/avery aircraft, $995.

Answer

Brief Explanations:

When a company pays cash on account, it reduces its accounts - payable liability. Accounts Payable is debited as it decreases, and Cash is credited as cash is being paid out.

Answer:

B. debit Accounts Payable/Avery Aircraft, $995; credit Cash, $995.