Bill Returned All of the $5,700 Purchase of Equipment to Sue.The

question 87

Multiple Choice

Bill returned all of the $5,700 purchase of equipment to Sue.The company uses the voucher system.The entry to record this is:

• A)
• \[\begin{array}{l}
• \begin{array} { | l | l | }
• \hline \text { Vouchers Payable }& 5,700 \\
• \hline \text { Equipment }& 5,700 \\
• \hline
• \end{array}
• \end{array}\]
• B)
• \[\begin{array}{l}
• \begin{array} { | l r | }
• \hline \text { Equipment }& 5,700 \\
• \hline \text { Vouchers Payable } & 5,700 \\
• \hline
• \end{array}
• \end{array}\]
• C)
• \[\begin{array}{l}
• \begin{array} { | l | l | }
• \hline \text { Equipment }& 5,700 \\
• \hline \text { Accounts Payable } & 5,700 \\
• \hline
• \end{array}
• \end{array}\]
• D)None of these answers is correct.

---

Definitions:

Financial Restructuring

The reorganization of a company's financial structure, which may involve changing the mix of debt and equity to improve financial stability.

Distressed Firm

A company struggling financially and unable to meet its debt obligations.

Bankruptcy and Insolvency Act

A legal statute governing bankruptcy and insolvency proceedings in a jurisdiction, aimed at providing a fair settlement for creditors and relief for financially distressed individuals or businesses.

Reorganization

The process of restructuring a company's business or financial affairs, typically during financial distress, to increase efficiency or restore solvency.