A $4,000 machine is purchased by paying $1,000 cash and issuing a promissory note for the remainder.The journal entry should include a
A) credit to Machinery.
B) credit to Notes Payable.
C) credit to Notes Receivable.
D) debit to Cash.

Question

Quizplus · Accepted Answer

The journal entry should include a credit to Notes Payable for the $3,000 balance, as this represents the amount owed on the promissory note.

A $4,000 Machine Is Purchased by Paying $1,000 Cash and Issuing