Hennigan Company
Use the Five Transactions Below for Hennigan Rentals $\quad$

question 98

Multiple Choice

Hennigan Company
Use the five transactions below for Hennigan Rentals to answer the questions that follow.
Dec. 1 $\quad$ Hennigan purchases two new saws on credit at $\$ 375$ each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days.

8 $\quad$ Hennigan accepts advance deposits for tool rentals of $\$ 75$ .

15 $\quad$ Hennigan receives a bill from Farmer's Electric Company for $\$ 150$ . Payment is due in 30 days.

20 $\quad$ Customers are charged $\$ 750$ by Hennigan for tool rentals. Payment is due from the customers in 30 days.

31 $\quad$ Hennigan receives $\$ 500$ in payments from the customers that were billed for rentals on December 20.
-Refer to the transactions for Hennigan Rentals. ?
Based on the December 31 transaction,Hennigan will record which of the following in its accounting records?

• A)A credit in Accounts Payable for $500
• B)A credit in Accounts Receivable for $500
• C)A debit in Accounts Payable for $500
• D)A debit in Accounts Receivable for $500

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Definitions:

Everyday Tasks

Routine activities that individuals perform as part of their daily living, such as cleaning, cooking, and personal care.

Breastfeeding

The act of a mother feeding her infant with milk directly from her breasts, providing nutritional and immunological benefits to the child.

Pediatricians

Medical doctors specializing in the care and treatment of infants, children, and adolescents, focusing on physical, behavioral, and mental health issues.

Bottle-feeding

The method of feeding babies with milk or formula from a bottle, as opposed to breastfeeding.