Martin Supply Service Paid $350 Cash to a Materials Supplier

question 88

Multiple Choice

Martin Supply Service paid $350 cash to a materials supplier that it owed from the previous month.What is the effect of the cash payment on accounts of the business?

• A) Materials account increases; Owner's capital account decreases.
• B) Cash account decreases; Accounts payable increases.
• C) Accounts payable increases; Owner's capital account decreases.
• D) Cash account decreases; Accounts payable decreases.

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