Adam Lowry, Inc., purchased supplies on account for $5,000. Later Lowry paid $3,000 on account. 1. Journalize

Question:

Adam Lowry, Inc., purchased supplies on account for $5,000. Later Lowry paid $3,000 on account.
1. Journalize the two transactions on the books of Adam Lowry, Inc. Include an explanation for each transaction.
2. Open a T-account for and post to Compute the balance and denote it as Bal.
3. How much does the Lowry business owe after both transactions? In which account does this amount appear?
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...