On December 10, Yummy Catering purchased a new oven costing $10,000. They issued a check a check for $2,000 and promised to pay the balance in 30 days. The journal entry to record this transaction is:

Question

Quizplus · Accepted Answer

Since Yummy Catering issued a check for $2,000, this means that they paid $2,000 in cash, reducing the amount owed to $8,000. The transaction involves the purchase of equipment worth $10,000, for which the company owes the supplier $8,000. Therefore, the entry should debit Equipment for its value of $10,000 and credit Cash for the amount paid, $2,000, and Accounts Payable for the remaining balance, $8,000. Choice D is the only option that records these transactions accurately.

On December 10, Yummy Catering Purchased a New Oven Costing