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

question 170

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 15 transaction,Hennigan will record which of the following in its accounting records?

• A)A credit in Accounts Payable for $150
• B)A credit in Accounts Receivable for $150
• C)A debit in Accounts Payable for $150
• D)A debit in Accounts Receivable for $150

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Definitions:

Euthanasia Directive

A legal document expressing a person's wish to have their life ended in a humane way in case of terminal illness or unbearable suffering.

Durable Power

Often used in the context of "Durable Power of Attorney," it refers to a legal document granting someone authority to act on another's behalf in specific legal or financial matters, continuing even if the grantor becomes incapacitated.

End of Life

Refers to the period during which an individual is living with, and approaching death from, a terminal condition.

Advanced Directives

Legal documents that allow individuals to specify their preferences for medical treatment in case they become unable to communicate their wishes in the future.