Which of the Following Scenarios Could Explain the Journal Entry

question 70

Multiple Choice

Which of the following scenarios could explain the journal entry below?

• A)The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit.
• B)The company pays $4,000 in cash and $6,000 in notes payable to buy $10,000 of equipment.
• C)The company sells $10,000 of equipment,for $4,000 in cash and $6,000 on credit.
• D)The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.

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Definitions:

Prescription

A physician's written order for medication.

Millimeters

A metric unit of length equal to one thousandth of a meter.

Kilometer

A unit of length in the metric system, equal to 1,000 meters.

Physician

A healthcare professional who diagnoses and treats illnesses and injuries in patients.