Which of the following scenarios could explain the journal entry below?
A)The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit.
B)The company receives $4,000 in cash and $6,000 in notes payable for selling 10,000 of equipment.
C)The company buys $10,000 of equipment,for $4,000 cash and a promise to cancel $6,000 of debt owed to it.
D)The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.

Question

Which of the following scenarios could explain the journal entry below? 
A)The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit. 
B)The company receives $4,000 in cash and $6,000 in notes payable for selling 10,000 of equipment. 
C)The company buys $10,000 of equipment,for $4,000 cash and a promise to cancel $6,000 of debt owed to it. 
D)The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.

Quizplus · Accepted Answer

The Answer of Which of the following scenarios could explain the journal entry below? 
A)The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit. 
B)The company receives $4,000 in cash and $6,000 in notes payable for selling 10,000 of equipment. 
C)The company buys $10,000 of equipment,for $4,000 cash and a promise to cancel $6,000 of debt owed to it. 
D)The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.

Which of the Following Scenarios Could Explain the Journal Entry