Question

When a bill is paid using the Pay Bills window, QuickBooks records a journal entry that:________. A) Debits Accounts Receivable,Credits Checking account B) Debits Expense account, Credits Accounts Payable C) Credits Checking account, Debits Accounts Payable D) Debits Checking account, Credits Undeposited Funds

Answer 1

Answer:

C)

Explanation:

When a bill is paid using the Pay Bills window, QuickBooks records a journal entry that Credits Checking account, Debits Accounts Payable. Meaning that it records a withdrawal (Credit) from your own checking account that was used to pay the bill, while simultaneously records a deposit (Debit) on the account that was just paid through the bill.