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Equipment Costing $20,000 Is Purchased by Paying $5,000 Cash and Signing

Question 189

Multiple Choice

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder.The journal entry should include a


A) debit to Notes Payable.
B) credit to Cash.
C) credit to Notes Receivable.
D) credit to Equipment.

Correct Answer:

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