The Gulp Convenience Store Chain Buys New Soda Machines for $450,000

question 63

Multiple Choice

The Gulp convenience store chain buys new soda machines for $450,000 and pays $50,000 for installation.One-half of the total cost is paid in cash; the other half is financed.How should the company record this transaction?

• A)Debit cash for $250,000,debit notes payable for $250,000,and credit equipment for $500,000.
• B)Debit equipment for $500,000,credit cash for $250,000,and credit notes payable for $250,000.
• C)Debit cash for $250,000,debit notes payable for $250,000 credit equipment for $450,000,and credit expenses for $50,000.
• D)Debit equipment for $450,000,debit expenses for $50,000,credit cash for $250,000,and credit notes payable for $250,000.

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Definitions:

Product Groupings

The classification of individual products into larger categories based on characteristics, functions, or customer segmentation for marketing and logistical purposes.

Strategic Marketing Process

The approach that a business takes to develop and implement effective marketing strategies that align with its overall objectives and meet customer needs.

Implementation

Implementation refers to the process of putting plans, strategies, or ideas into action in order to achieve specific goals or objectives.

Evaluation

The process of assessing or examining something to determine its value, significance, or condition.