The price paid for the purchase of a business is ________?

A. debited to the cash account and credited to the vendor’s account
B. credited to the cash account and debited to the vendor’s account
C. credited to the business purchases account and debited to the assets account
D. debited to the business purchase account and credited to the assets account
E. credited to the cash account and debited to the assets account

Correct Answer:

Option B – credited to the cash account and debited to the vendor’s account