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