Question

1. The organization purchased a $12,000 of pharmaceuticals which is which it routinely uses in its treatment of patients. These drugs have been delivered by the vendor and stored on the shelves of the organization for future use, however payment to the vendor for these has not been made.

Your Answer for the correct account to DEBIT:   _______

1. Pharmacy Expense
2. Pharmacy Inventory
3. Pharmacy Equipment
4. Accounts Payable

2. The organization purchased a piece of equipment that cost $25,000 in exchange for a payment of cash.

Your Answer for the correct account to DEBIT:   ________

1. Cash
2. Accounts Payable
3. Accounts Receivable
4. Equipment

3. Wages for the organization’s employees earned and recorded last month are paid in the current month in the amount of $25,000.

Your Answer for the correct account to DEBIT:   ________

1. Cash
2. Accounts Payable
3. Salaries Payable
4. Salary Expense

Answer 1

The organization purchased a $12,000 of pharmaceuticals which is which it routinely uses in its treatment of patients. These drugs have been delivered by the vendor and stored on the shelves of the organization for future use, however payment to the vendor for these has not been made.

For given Statement Pharmacy Inventory Account will be debited.

Correct option is (B)

The organization purchased a piece of equipment that cost $25,000 in exchange for a payment of cash.

For given Statement Equipment Account will be debited.

Correct option is (D)

Wages for the organization’s employees earned and recorded last month are paid in the current month in the amount of $25,000.

For given Statement Salaries payable Account will be debited.

Correct option is (C)

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