Which of the following scenarios could explain the journal entry below? $$\begin{array} { | l | l | r | r | }
\hline d r & \text { Cash } & 4,000 & \
\hline d r & \text { Notes Receivuble } & 6,000 & \
\hline & c r \text { Equipment } & & 10,000 \
\hline
\end{array}$$
A)The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit.
B)The company pays $4,000 in cash and $6,000 in notes payable to buy $10,000 of equipment.
C)The company sells $10,000 of equipment,for $4,000 in cash and $6,000 on credit.
D)The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.

Question

Which of the following scenarios could explain the journal entry below? $$\begin{array} { | l | l | r | r | } 
\hline d r & \text { Cash } & 4,000 & \
\hline d r & \text { Notes Receivuble } & 6,000 & \
\hline & c r \text { Equipment } & & 10,000 \
\hline
\end{array}$$
A)The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit.
B)The company pays $4,000 in cash and $6,000 in notes payable to buy $10,000 of equipment.
C)The company sells $10,000 of equipment,for $4,000 in cash and $6,000 on credit.
D)The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.

Quizplus · Accepted Answer

The journal entry reflects a sale of equipment for $10,000, receiving $4,000 in cash and a $6,000 note receivable, indicating credit terms.

Which of the Following Scenarios Could Explain the Journal Entry