Green Systems Sold and Delivered Modems to Blue Computers for $660,000

question 130

Multiple Choice

Green Systems sold and delivered modems to Blue Computers for $660,000 to be paid by Blue in three equal installments over the next three months.The journal entry made by Blue Computers to record the last of the three installment payments will include:

• A)A debit of $220,000 to Modem Expense.
• B)A debit of $220,000 to Accounts Receivable.
• C)A debit of $220,000 to Cash.
• D)A debit of $220,000 to Accounts Payable.

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Definitions:

Insurance Policy

A contract between an individual or entity and an insurance company, outlining the terms and conditions under which the insurer agrees to compensate the insured for specific losses.

Steel Bridge

A steel bridge is a type of bridge that uses steel as its primary construction material, known for its strength, durability, and ability to span long distances.

Contracted

The condition of having entered into a formal agreement, typically enforceable by law.

Stain-Resistant

A characteristic of materials or surfaces that prevents or reduces staining when exposed to potential stain-causing substances.