The purchase of office equipment at a cost of $3,600 with an immediate down payment of $1,000 and agreement to pay the balance within 60 days is recorded by
A)a debit of $3,600 to Office Equipment,a credit of $1,000 to Cash,and a credit of $2,600 to Accounts Payable.
B)a debit of $2,600 to Accounts Receivable,a debit of $1,000 to Cash,and a credit of $3,600 to Office Equipment.
C)a debit of $3,600 to Office Equipment,a credit of $1,000 to Cash,and a credit of $2,600 to Accounts Receivable.
D)None of these are correct.

Question

Quizplus · Accepted Answer

The correct entry involves debiting the full cost of the office equipment to reflect the asset's acquisition and crediting cash for the down payment made. The remaining balance is credited to accounts payable, indicating the obligation to pay the supplier in the future.

The Purchase of Office Equipment at a Cost of $3,600