At delivery, the company receives the supplies and becomes obligated to pay. The invoice checks the recorded purchase, and payment later settles part of the payable.
The cancellable order alone does not give the company the supplies or obligate it to pay, and the later cash payment must be recorded.
The company accepted the supplies and became obligated at delivery. The invoice does not change the recorded balances. Payment reduces Cash and Accounts Payable.
The invoice provides evidence for the purchase already recorded. Recording it again would duplicate the supplies and payable.
Answer: A
The cancellable order requires no entry under the stated facts. At delivery, Supplies and Accounts Payable each increase by $5,000. The invoice checks the recorded amount but does not change either balance. Paying $2,000 reduces Cash and the payable. Ending Cash is $8,000, Supplies are $5,000, total assets are $13,000, liabilities are $3,000, and equity is $10,000.