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 the purchaser with:

Question

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The purchaser is buying office equipment for $7,600 and immediately paying $4,200, so the initial journal entry would be a debit of $7,600 to Office Equipment and a credit of $4,200 to Cash. The remaining balance of $3,400 would be recorded as Accounts Payable since the purchaser has agreed to pay it within 60 days. Therefore, the correct choice is D - a debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.

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