The journal entry to record the purchase of equipment by making a down payment and signing an installment note for the balance would include a:
A)credit to Installment Notes Payable
B)debit to Interest Expense
C)credit to Equipment
D)debit to Cash

Question

Quizplus · Accepted Answer

The purchase of equipment involves a credit to Installment Notes Payable for the balance owed, as it represents a liability.

The Journal Entry to Record the Purchase of Equipment by Making