On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client. Josh paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a
A) credit to Josh Antonio, Capital.
B) credit to Notes Payable.
C) debit to Accounts Receivable.
D) credit to Accounts Payable.

Question

Quizplus · Accepted Answer

When Josh buys equipment on credit, it results in a credit to Accounts Payable, as this represents a liability that he will need to pay in the future.

On October 3, Josh Antonio, a Carpenter, Received a Cash