Carrie flew to San Francisco on a business trip.The purchase price of the ticket was $422 and it was bought on account.The entry to record the transaction is:

Question

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The transaction involves a business trip, which should be recorded as a travel expense. The ticket was bought on account, which means that the company owes money to the airline, and this should be recorded as an accounts payable. Therefore, the appropriate entry would be to debit Travel Expense and credit Accounts Payable for $422. Option A is incorrect because it debits Accounts Payable, which is the opposite of what should be done. Option B is incorrect because it debits Capital, which is not affected by this transaction. Option D is incorrect because it credits Cash, which was not used to purchase the ticket.

Carrie Flew to San Francisco on a Business Trip