If Hot Bagel Co

question 16

Multiple Choice

If Hot Bagel Co. estimates depreciation on an automobile to be $578 for the year they should make the following adjusting entry:

• A) Debit Accumulated Depreciation $578 and credit Depreciation Expense $578.
• B) Debit Depreciation Expense $578 and credit Automobile $578.
• C) Credit Accumulated Depreciation $578 and debit Depreciation Expense $578.
• D) Debit Automobile $578 and credit Depreciation Expense $578.

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Definitions:

Personal Withdrawal

It refers to the money taken out of a business by its owner(s) for personal use, often considered as a draw against the owner's equity.

Post. Ref.

An abbreviation for "posting reference," used in accounting ledgers to indicate the connection or correlation between journal entries and the accounts they affect.

Revenue Journal

A specialized journal used to record the sales of services or goods on credit.

Accounts Receivable

Funds that a company's customers have not yet remitted for products or services that have been provided.