Double-Entry Account Records What Is Exchanged in a Transaction (Debits

question 3

Multiple Choice

Double-entry account records what is exchanged in a transaction (debits and credits) .Which of the following is recorded when a company purchases (receives) a computer and pays (gives) cash?

• A)The computer is recorded as a credit and the cash is recorded as a credit
• B)The computer is recorded as a debit and the cash is recorded as a debit
• C)The computer is recorded as a credit and the cash is recorded as a debit
• D)The computer is recorded as a debit and the cash is recorded as a credit

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Definitions:

Maturity Date

The specified date when the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Allowance Method

An accounting technique that estimates and accounts for bad debts expense, reducing accounts receivable by a predicted amount of uncollectible accounts.

Outstanding Receivables

Amounts due to a company for goods or services that have been delivered or sold but not yet paid by customers.

Allowance for Doubtful Accounts

A contra asset account that reflects the estimated amount of accounts receivable that may not be collectible.