Question

The entry to record the purchase of computers for $5,000, paying $2,500 in cash and the remaining balance on account would be:

Select one:

a. Computers Expense is debited by 5000 & Cash and Account Payable are credited by 2500 for each account

b. Computers is debited by 5000 & Cash and Account Payable are credited by 2500 for each account

c. Cash and Account Payable are debited by 2500 for each account & Computers is credited by 5000

d. Computers is debited by 2500 & Cash and Account Payable are credited by 5000 for each account

Answer 1

Solution:
	Journal Entry of the same is as below,
Journal Entries
Transaction	Account Title	Debit	Credit
----	Computers	$5,000
	Cash		$2,500
	Accounts Payable		$2,500
	As per the above journal entry,
Answer = Option b. Computers is debited by 5000 & Cash and Account Payable are credited by 2500 for each account