Which of the following scenarios could explain the journal entry below?
A) The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit.
B) The company pays $4,000 in cash and $6,000 in notes payable to buy $10,000 of equipment.
C) The company sells $10,000 of equipment,for $4,000 in cash and $6,000 on credit.
D) The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.
Correct Answer:
Verified
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