You are the owner of Jack's Chicken Shack, Inc. Your company purchases $3,000 worth of chicken from Chick Filet on account. When you pay the amount you owe Chick Filet, the transaction for the payment will be recorded on Chick Filet's books as: increase an asset $3,000 and increase a liability $3,000. increase an asset $3,000 and decrease another asset. decrease an asset $3,000 and decrease a liability. nothing because this is not a transaction for Chick Filet. QUESTION 20 You are the owner of Sammie's Sliders. Your company purchases $500 worth of buns from Buns Limited on account. The transaction for the sale will be recorded on your books as: increase an asset $500 and increase a liability $500. increase an asset $500 and decrease another asset $500. decrease an asset $500 and decrease a liability $500. nothing because the buns have not been paid for yet. QUESTION 21 You are the owner of the Barth Bakery. Your bakery owes Baking Supply Company $15,000 on account. When your bakery pays the debt, the transaction recorded on Baking Supply Company's books will: decrease an asset $15,000 and decrease a liability $1,000. increase an asset $15,000 and decrease a liability $1,000. increase an asset $15,000 and decrease an asset $15,000. not change anything as this is not a transaction for Rides N' More. 1 poi QUESTION 22 The retained earnings account only reflects the profits retained in the business and gains and losses are included. O True False Save All Answers