The entry to record the Molly Company payment of $300 for repairs just completed to computer equipment it owns would include
A) debit Repair Expense, $300; credit Accounts Payable, $300.
B) debit Accounts Payable, $300; credit Cash, $300.
C) debit Repair Expense, $300; credit Cash, $300.
D) debit Cash, $300; credit Repair Expense, $300.

Question

Quizplus · Accepted Answer

The Molly Company paid for the repairs with cash, so Cash should be credited. The repairs just completed are an expense for the company, hence, Repair Expense should be debited. Therefore, the correct entry is debit Repair Expense, $300; credit Cash, $300.

The Entry to Record the Molly Company Payment of $300