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:

Strategic Control

The process of monitoring and evaluating the strategies that an organization implements to achieve its goals and making necessary adjustments.

Formal Operations

The stage of cognitive development, as proposed by Piaget, characterized by the ability to think logically about abstract concepts and hypothetical situations.

Concrete Operations

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events and objects.

Adolescence

The transition period from childhood to adulthood, extending from puberty to independence.