Bill returned all of the $5,700 purchase of equipment to Sue.The company uses the voucher system.The entry to record this is:
A)
$$\begin{array}{l}
\begin{array} { | l | l | }
\hline \text { Vouchers Payable }& 5,700 \
\hline \text { Equipment }& 5,700 \
\hline
\end{array}
\end{array}$$
B)
$$\begin{array}{l}

\begin{array} { | l r | }
\hline \text { Equipment }& 5,700 \
\hline \text { Vouchers Payable } & 5,700 \
\hline
\end{array}
\end{array}$$
C)
$$\begin{array}{l}

\begin{array} { | l | l | }
\hline \text { Equipment }& 5,700 \
\hline \text { Accounts Payable } & 5,700 \
\hline
\end{array}
\end{array}$$
D)None of these answers is correct.

Question

Bill returned all of the $5,700 purchase of equipment to Sue.The company uses the voucher system.The entry to record this is:
A)
$$\begin{array}{l}
\begin{array} { | l | l | } 
\hline \text { Vouchers Payable }& 5,700 \
\hline \text { Equipment }& 5,700 \
\hline
\end{array}
\end{array}$$
B)
$$\begin{array}{l}

\begin{array} { | l r | } 
\hline \text { Equipment }& 5,700 \
\hline \text { Vouchers Payable } & 5,700 \
\hline
\end{array}
\end{array}$$
C)
$$\begin{array}{l}

\begin{array} { | l | l | } 
\hline \text { Equipment }& 5,700 \
\hline \text { Accounts Payable } & 5,700 \
\hline
\end{array}
\end{array}$$
D)None of these answers is correct.

Quizplus · Accepted Answer

The correct entry is to debit Vouchers Payable and credit Equipment, as the return of equipment reduces the liability and the asset.

Bill Returned All of the $5,700 Purchase of Equipment to Sue.The