Multiple choice

When cash is paid on account, the amount is recorded in the

  1. Accounts Payable Debit column and Cash Credit column

  2. Sales Credit column and Cash Debit column

  3. General Debit column and Cash Credit column

  4. Cash Debit column and General Credit column

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Paying on account reduces a liability (Accounts Payable) and reduces an asset (Cash). In accounting journals, this is recorded by debiting the liability and crediting cash.