The Purchase of Office Equipment at a Cost of $3,600

question 198

Multiple Choice

The purchase of office equipment at a cost of $3,600 with an immediate down payment of $1,000 and agreement to pay the balance within 60 days is recorded by:

• A) A debit of $3,600 to Office Equipment, a credit of $1,000 to cash, and a credit of $2,600 to Accounts Payable.
• B) A debit of $2,600 to Accounts Receivable, a debit of $1,000 to Cash, and a credit of $3,600 to Office Equipment.
• C) A debit of $3,600 to Office Equipment, a credit of $1,000 to Cash, and a credit of $2,600 to Accounts Receivable.
• D) None of these choices

---

Definitions:

Useful Life

The estimated period during which an asset is expected to be usable for its intended purpose.

Operating Costs

Expenses associated with the day-to-day functioning of a business, including costs related to administration, sales, and production operations.

Service Hours

A measure of the amount of labor time or effort that is provided by a company as a service.

Percentage Change

A mathematical calculation that indicates the degree of change over time, expressed as a percentage.