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A Business Sold Equipment for $40,300 Cash

Question 123

Multiple Choice

A business sold equipment for $40,300 cash. The equipment was purchased one month earlier for $40,300 but the plans for the equipment changed.


A) Debit Equipment for $40,300 and credit Cash for $40,300.
B) Debit Equipment for $40,300 and credit Retained Earnings for $40,300.
C) Debit Cash for $40,300 and credit Equipment for $40,300.
D) Debit Retained Earnings for $40,300 and credit Equipment for $40,300.

Correct Answer:

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