Which of the Following Journal Entries Would Be Recorded If $\begin{array}{|l|r|r|}\hline \text { Cash } & 750 \\\hline \text { Accounts Payable } &&750 \\\hline\end{array}$

question 202

Multiple Choice

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

• A) \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 750 \\
• \hline \text { Accounts Payable } &&750 \\
• \hline
• \end{array}\)
• B) \(\begin{array}{|l|r|r|}
• \hline \text { Accounts Payable } & 750 \\
• \hline \text { Cash } &&750 \\
• \hline
• \end{array}\)
• C) \(\begin{array}{|l|r|r|}
• \hline \text { Office Supplies } & 750 \\
• \hline \text { Cash } &&750 \\
• \hline
• \end{array}\)
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 750 & \\
• \hline \text { Office Supplies } & & 750 \\
• \hline
• \end{array}\]

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Definitions:

Subsistence Agriculture

Subsistence Agriculture is a type of farming in which the farmers focus on growing enough food to feed themselves and their families, with little to no surplus for trade.

Agricultural Diversification

The practice of growing a variety of crops or engaging in different agricultural activities to reduce risk and increase sustainability in farming.

Crop-Lien System

A credit system widely used in the Southern United States after the Civil War, where farmers used their crops as collateral for loans, leading to cycles of debt and poverty.

Southern Farmers

Generally refers to agricultural workers and landowners in the Southern United States, historically dependent on crops like cotton and tobacco, and deeply affected by the Civil War and subsequent economic changes.