A Xerox DocuColor Photocopier Costing $42,000 Is Paid Off in 60

question 59

Multiple Choice

A Xerox DocuColor photocopier costing $42,000 is paid off in 60 monthly installments at 6.5% APR.After three years the company wishes to sell the photocopier.What is the minimum price for which they can sell the copier so that they can cover the cost of the balance remaining on the loan?

• A)$18,448
• B)$19,645
• C)$19,842
• D)$26,813

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Definitions:

Posting Process

The accounting procedure of transferring journal entry information to the ledger to update account balances.

General Ledger

The General Ledger is a complete record of all financial transactions over the life of a company, organized by accounts.

Sales Journal

is a specialized accounting journal used to record all sales transactions of a business on credit.

Merchandise

Goods or products that are bought and sold by businesses.