On March 8, Saltwater Taffy Company bought supplies on account from the Sweet Honey Company for $440. Saltwater Taffy Company incorrectly debited Equipment for $400 and credited Accounts Payable for $400. The entries have been posted to the ledger. The correcting entry should be:
D) $$\begin{array}{ll} \text {Supplies }&440\\text {Equipment }&&400\\text {Accounts Payable}&&40\ \end{array}$$

Question

On March 8, Saltwater Taffy Company bought supplies on account from the Sweet Honey Company for $440. Saltwater Taffy Company incorrectly debited Equipment for $400 and credited Accounts Payable for $400. The entries have been posted to the ledger. The correcting entry should be: 
D) $$\begin{array}{ll} \text {Supplies }&440\\text {Equipment }&&400\\text {Accounts Payable}&&40\ \end{array}$$

Quizplus · Accepted Answer

The Answer of On March 8, Saltwater Taffy Company bought supplies on account from the Sweet Honey Company for $440. Saltwater Taffy Company incorrectly debited Equipment for $400 and credited Accounts Payable for $400. The entries have been posted to the ledger. The correcting entry should be: 
D) $$\begin{array}{ll} \text {Supplies }&440\\text {Equipment }&&400\\text {Accounts Payable}&&40\ \end{array}$$

On March 8, Saltwater Taffy Company Bought Supplies on Account Supplies 440Equipment 400Accounts Payable40\begin{array}{ll}\text {Supplies }&440\\\text {Equipment }&&400\\\text {Accounts Payable}&&40\\\end{array}Supplies Equipment Accounts Payable​440​40040​

On March 8, Saltwater Taffy Company Bought Supplies on Account $\begin{array}{ll}\text {Supplies }&440\\\text {Equipment }&&400\\\text {Accounts Payable}&&40\\\end{array}$