This treats the cash payment as an expense and omits both the supplies still held and the unpaid obligation.
Cash is $3,500 and supplies are $4,000; the remaining payable is $2,500, leaving equity unchanged at $5,000.
This records the supplies but fails to reduce cash and the payable for the $1,500 settlement.
This reduces cash and equity but leaves the original payable untouched, replacing settlement with an unsupported expense.
Answer: B
The company begins with $5,000 cash and equity. Delivery adds $4,000 supplies and $4,000 Accounts Payable. Paying $1,500 reduces cash and the payable by the same amount. Ending cash is $3,500, supplies are $4,000, total assets are $7,500, liabilities are $2,500, and equity is $5,000. Choice B is correct.