Office equipment was purchased for $2,400 on account from Office Express.The journal entry would include a:
A)debit to Office Equipment and a credit to Cash.
B)credit to Cash and a debit to Office Equipment Expense.
C)debit to Office Equipment and a credit to Accounts Payable.
D)debit to Accounts Payable and a credit to Cash.

Question

Quizplus · Accepted Answer

The purchase of office equipment on account means that the company owes the supplier. Therefore, the journal entry should include a debit to Office Equipment since we are acquiring an asset and a credit to Accounts Payable since we owe money to Office Express.

Office Equipment Was Purchased for $2,400 on Account from Office