Spot Co. purchases office supplies from Sally Supplies, Inc.. Spot does not pay cash for the purchase, and now owes the amount to Sally. This transaction would typically be recorded in which account in Spot's books:
A. Accounts Receivable
B. Unearned fees
C. Accounts payable
D. Wages payable

C. Account payable

Explanation:

Account payable is the amount owned by a firm to its suppliers which is shown as a liability on a firms balance sheet. Accounts payable is the money a firm owes its vendors. It is a firms obligation to pay short-term debt to its suppliers at a given period of time.

Account payable is the total amount owed by a firm to its suppliers for supplying a quantity of goods and services.

Sally supplies inc. supplied Spot Co. office supplies but Spot Co has not paid cash for the purchase and as a result owes Sally supplies inc.

The transaction would be recorded in account payable account of Spot inc. book.

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