What should be recorded for the payment of $770,000 on accounts payable?

The correct treatment for the payment of $770,000 on accounts payable is to debit Accounts Payable and credit Cash, representing the outflow of resources to settle the liability. Debiting Accounts Payable indicates a reduction in the total amount owed to creditors, as this payment decreases the liability on the balance sheet. Conversely, crediting Cash reflects a decrease in the cash asset, acknowledging that cash resources have been utilized to fulfill this obligation.

Thus, the entry would be to decrease the liabilities by the amount of $770,000 while concurrently reducing the cash asset for the same amount, clearly showing the accounting principle of double-entry accounting in action. This correctly reflects the transaction's impact on the entity's financial position.

Other options do not represent the proper recording of a payment on accounts payable, either by incorrectly combining different accounts or showing incorrect increases or decreases in cash or payable accounts.