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A $20,000 Machine Is Purchased by Paying $5,000 Cash and Agreeing

Question 7

Multiple Choice

A $20,000 machine is purchased by paying $5,000 cash and agreeing to pay for the remainder in 30 days' time, the journal entry should include a:


A) credit to Accounts payable.
B) debit to Cash.
C) credit to Revenue.
D) credit to Machinery.

Correct Answer:

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