Payton Corporation,acquired some office equipment,including a desk costing $900.The owner of the business next door said that he had been searching for a desk just like that one,so Payton Corporation,sold the desk to its business neighbor at cost,receiving $400 in cash,with the remainder to be paid in 30 days.The effect of this transaction on Payton Corporation,would be to

Question

Quizplus · Accepted Answer

The correct answer is D because Payton Corporation received $400 in cash and will receive $500 later, which increases the accounts receivable. The equipment account decreases by $900, the cost of the desk.

Payton Corporation,acquired Some Office Equipment,including a Desk Costing $900