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A Company Purchases a Delivery Van by Paying $5,000 Cash

Question 83

Multiple Choice

A company purchases a delivery van by paying $5,000 cash and by signing a $25,000 note payable.Which of the following correctly describes the recording of the delivery van purchase?


A) The delivery van account is debited for $25,000.
B) Notes payable is debited for $25,000.
C) The delivery van account is debited for $30,000.
D) Cash is debited for $5,000.

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