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Question 1.25 When sales are made on account, which of the following will occur? Accounts receivable will increase O Revenues will decrease O Cash will increase O Accounts payable will decrease Question 1.26 On May 31 Simpson Co. pays $1,200 for newspaper advertising during May. What is the effect on the accounting equation? O prepaid advertising increases $1,200, Cash decreases $1,200 O cash increases $1,200, Advertising expense decrease $1,200 O accounts payable increases $1,200, Advertising expense increase $1,200 O advertising expense increases $1,200, cash decreases $1,200 Question 1.27 2 pe Sam's Lawn Care purchased $2,500 of supplies for the upcoming summer season. Sam paid $500 cash and owes the remaining amount next month. What is the appropriate journal entry for this transaction? O Debit supplies $500, credit cash $500 O Debit supplies $2,500, Credt cash $500, Credt accounts payable $2,000 O Debit supplies expense $2,500, credit cash $2.500 O Dobit supplies $2,500, Credit cash $2,500