Susan flew to San Francisco on a business trip that will be reimbursed by her employer. The purchase price of the ticket was $800 and it was bought on account. The entry to record the transaction is:
A) debit Accounts Payable, $800; credit Travel Expense, $800.
B) debit Capital, $800; credit Accounts Payable, $800.
C) debit Travel Expense, $800; credit Accounts Payable, $800.
D) debit Travel Expense, $800; credit Cash, $800.

Question

Quizplus · Accepted Answer

The correct entry to record the purchase of a ticket on account for a business trip is to debit Travel Expense for the cost of the ticket, recognizing the expense, and to credit Accounts Payable, indicating the amount owed for the ticket purchase.

Susan Flew to San Francisco on a Business Trip That