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If the Police Department Purchases a Police Car for $20,000

Question 48

Multiple Choice

If the police department purchases a police car for $20,000 and trades in the old car for $6,000 paying a net cash payment of $14,000, the entry in the General Fund would


A) debit Automobiles for $14,000.
B) debit Expenditures for $14,000.
C) credit Automobiles for $6,000.
D) debit Expenditures for $20,000.

Correct Answer:

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