Carrie flew to San Francisco on a business trip that will be reimbursed by her employer.The purchase price of the ticket was $500 and it was bought on account.The entry to record the transaction is:
A)debit Accounts Payable,$500;credit Travel Expense,$500.
B)debit Capital,$500;credit Accounts Payable,$500.
C)debit Travel Expense,$500;credit Accounts Payable,$500.
D)debit Travel Expense,$500;credit Cash,$500.

Question

Quizplus · Accepted Answer

Since the ticket was purchased on account, we need to credit Accounts Payable. The expense incurred is for travel, so we need to debit Travel Expense.  Therefore, the correct entry is: debit Travel Expense, $500; credit Accounts Payable, $500.

Carrie Flew to San Francisco on a Business Trip That