Consider the Following Journal Entry $$\begin{array} { c r r } \text { Software } & 18,000 & \\\quad \text { Cash } & & 7,200 \\\text { Note Payable } & & 10,800\end{array}$$

question 61

Multiple Choice

Consider the following journal entry: $$\begin{array} { c r r } \text { Software } & 18,000 & \\\quad \text { Cash } & & 7,200 \\\text { Note Payable } & & 10,800\end{array}$$ Which of the following explanations best describes this journal entry?

• A)The company buys $18,000 of software,pays cash of $7,200,and signs a note for $10,800.
• B)The company receives $7,200 in cash and $10,800 in notes payable in exchange for selling $18,000 of software.
• C)The company buys $18,000 of software,pays $7,200 cash,and promises to cancel a debt owed to the company in the amount of $10,800.
• D)The company sells $18,000 of software,receives $7,200 in cash,and pays off $10,800 it owes on the software.

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