Which of the Following Journal Entries Would Be Recorded If $$\begin{array} { | l | r | r | } \hline \text { Cash } & 600 & \\\hline \text { Accounts payable } & & 600 \\\hline\end{array}$$

question 12

Multiple Choice

Which of the following journal entries would be recorded if a business makes a cash payment to a supplier of $600 "on account" (the business had purchased supplies on account in the previous month) ?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 600 & \\
• \hline \text { Accounts payable } & & 600 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts payable } & 600 & \\
• \hline \text { Cash } & & 600 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 600 & \\
• \hline \text { Supplies } & & 600 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts payable } & 600 & \\
• \hline \text { Supplies } & & 600 \\
• \hline
• \end{array}\]

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Definitions:

Factory Overhead

All the overhead costs related to the production process, except for the expenses on direct materials and direct labor.

Cost of Goods Sold

The direct costs attributed to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production.

Job Order Cost Information

Details about the costs incurred for specific jobs or orders, including materials, labor, and overhead, used in job-order costing systems.