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Madrid Industries purchased supplies for 1,200 USD. they paid 500 USD in cash and agreed...

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Accounting

Madrid Industries purchased supplies for 1,200 USD. they paid 500 USD in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for 1,200 USD, a credit to a liability account for 700 USD. Which of the following would be the correct wa to complete the recording of the transaction? Show calculations.

a) Credit an asset account for 500 USD

b) Credit another liability account for 500 USD

c) Credit the Capital account for 500 USD

d) Debit the Capital account for 500 USD

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