Use the Five Transactions for Hennigan Company Described Below to Answer

question 133

Multiple Choice

Use the five transactions for Hennigan Company described below to answer the question(s) that follow(s) . Dec 1 Hennigan purchases two new saws on credit at $\$ 375$ each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days.
8 Hennigan accepts advance deposits for to ol Company of $\$ 75$ .
15 Hennigan receives a bill from Farmer's Electric Company for $\$ 150$ . Payment is due in 30 days.
20 Customers are charged $\$ 750$ by Hennigan for tool Company. Payment is due from the customers in 30 days.
31 Hennigan receives $\$ 500$ in payments from the customers that were billed for Company on December 20.
-Refer to the transactions for Hennigan Rentals. Based on the October 31 transaction, Hennigan will record which of the following in its accounting records?

• A) a credit in Accounts Payable for $500.
• B) a credit in Accounts Receivable for $500.
• C) a debit in Accounts Payable for $500.
• D) a debit in Accounts Receivable for $500.

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Definitions:

Conditions and Warranties

Terms specified in a contract that are deemed essential (conditions) and those seen as additional promises (warranties).

Bought by Sample

Bought by Sample means purchasing goods based on a sample shown, implying that the bulk purchase should match the quality and characteristics of the sample.

Title to Bark Mulch

The legal ownership of bark mulch, indicating the rights of possession, use, and disposal of the material.

Pre-delivery Preparation

Activities or procedures performed to ensure a product or service is ready for delivery or use, often involving checks and adjustments.