Question

On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. The remainder of the bill went on account. To record this transaction on 6/25: Supplies would be increased by $ (1,000/400/600); Cash would be decreased by $ (1,000/400/600) and Accounts Payable would be increased by $ (1,000/400/600).

Answer 1

Answer:

Supplies would be increased by $1,000

Cash would be decreased by $400

Accounts Payable would be increased by $600

Explanation:

Given that

Supplies costing = $1,000

Out of which $400 is paid by cash

And, the remaining amount i.e

= $1,000 - $400

= $600

This remaining amount would be on account i.e account payable

Since cash is paid so it decreased by $400 and supplies is purchased for $1,000 that means supplies increases by $1,000 and account payable is also increased  by $600