Morton & Associates Use the Following Five Transactions for Morton

question 60

Multiple Choice

Morton & Associates Use the following five transactions for Morton & Associates,Inc.to answer the question(s) .
See the transactions to Morton & Associates.
The journal entry to record the May 9 transaction will include a credit of $1,220 to

• A)Furniture and Supplies
• B)Cash
• C)Accounts Payable
• D)Administrative Expenses

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Definitions:

Truck Differential

A mechanical device in a truck that allows the outer drive wheel to rotate faster than the inner drive wheel during a turn, improving traction and handling.

Tandem Drive Truck

A truck with two rear axles, both of which are drive axles, providing better traction and load distribution.

Spinout

Occurs when differential action allows one drive wheel on a slippery surface to spin while the other remains stationary and receives no driving torque. On tandem drive trucks, because of the additional differential action between the drive axles, it is possible to turn a spinning wheel at four times its normal speed. This can take out the interaxle differential or carrier differential. Spinout is a driver abuse failure of differential carriers.

Loss of Traction

A situation where the tires of a vehicle fail to grip the road surface, resulting in loss of control.