The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by:

Question

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The purchase of office equipment for $7,600 is recorded with a debit to Office Equipment. Since $4,200 was paid immediately, it is recorded with a credit to Cash. The remaining balance of $3,400 is recorded with a credit to Accounts Payable, as it is an obligation to pay in the future. Therefore, option D is the correct answer. Option A is incorrect as it records a debit to Accounts Receivable, which is not applicable as there is no sale of goods or services. Option B is incorrect as it records a credit to Accounts Receivable, which is not applicable either. Option C is incorrect as it records a debit to Cash, which is only applicable to the immediate payment made.

The Purchase of Office Equipment at a Cost of $7,600