Prarie Clinic purchased X-ray equipment for $7,500, paid $2,250 down, with the remainder to be paid later. The correct entry would be

Question

Quizplus · Accepted Answer

This entry reflects the purchase of equipment with a partial payment in cash and the remainder to be paid later through an account payable. Equipment account is debited for the total amount of the purchase. Cash account is credited for the down payment, and the Accounts Payable account is credited for the remaining amount owed. Therefore, option D is the correct accounting entry.

Prarie Clinic Purchased X-Ray Equipment for $7,500, Paid $2,250 Down