Which of the following correctly records the sale of a lorry on credit to D. Watson (assume no profit
Or loss on the sale):

Question

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When a lorry is sold on credit to D. Watson, the buyer's account (D. Watson account) is debited because he owes money for the purchase, and the Motor vehicles account is credited to record the removal of the asset from the business. This entry reflects the increase in receivables (D. Watson owes the business money) and the decrease in a fixed asset (the lorry leaving the business inventory).

Which of the Following Correctly Records the Sale of a Lorry