Phast Mail Service purchased equipment for $2000. Phast paid $500 in cash and signed a note for the balance. Phast debited the Equipment account credited Cash and

Question

Quizplus · Accepted Answer

When Phast Mail Service signed a note for the balance of $1500, they incurred a liability. Thus, they should credit a liability account for $1500 to reflect this. So, the correct answer is D - credited a liability account for $1500.

Phast Mail Service Purchased Equipment for $2000