Use the Following Five Transactions for Monaco & Associates, Inc

question 88

Multiple Choice

Use the following five transactions for Monaco & Associates, Inc.to answer the question(s) . $$\begin{array}{lll}october&1&\text { Bills are sent to clients for services provided in September in the amount of \$ 800 .}\\&9&\text { Dravo Co. delivers office fumiture (\$ 1,060) and office supplies (\$ 160) to }\\&&\text { Monaco leaving an invoice for \$ 1,220 .}\\&15&\text { Payment is made to Dravo Co. for the furniture and office supplies delivered }\\&&\text { on October 9.}\\&23&\text { A bill for \$ 430 for electricity for the month of September is received and will }\\&&\text { be paid on its due date in November.}\\&31&\text { Salaries of \$ 850 are paid to employees.}\\\end{array}$$
-See the transactions to Monaco & Associates. The journal entry to record the October 15 transaction will include a debit of $1,220 to

• A) Salaries Expense
• B) Salaries Payable
• C) Prepaid Expenses
• D) Accounts Payable

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Definitions:

Facility Level

Pertains to the activities and costs associated with maintaining a physical establishment or the overall environment where business operations occur.

Sales Price

The amount a customer pays to purchase a good or service.

Low-Volume Products

Products that are manufactured or sold in relatively small quantities compared to other products.

Cost Pool

A collection of indirect costs grouped together, typically for the purpose of allocating them to different products, services, or departments.