S2-7. (Learning Objectives 2, 3: Understanding how accounting works; journalizing transactions; posting) David Delorme purchased supplies on account for $3,000. Later Delorme paid $550 on account.

1. Journalize the two transactions on the books of David Delorme. Include an explanation for each transaction.

2. Open a T-account for Accounts Payable and post to Accounts Payable. Compute the balance and denote it as Bal.

3. How much does the Delorme business owe after both transactions? In which account does this amount appear?