The Controller for Tires and More,Inc

question 117

Multiple Choice

The controller for Tires and More,Inc.has recorded the following transactions during the month: the purchase of equipment for $8,500 cash;payment of $6,300 for 3 months rent;and,collection of $2,400 from a customer for services performed.At the beginning of the month the owner established the business by making an investment of $15,000 cash.What is the balance in the Cash account at the end of the month,and is the balance a debit or a credit?

• A)$2,600 debit.
• B)$2,600 credit.
• C)$6,800 debit.
• D)$15,200 debit.

---

Definitions:

Sales Returns

Transactions involving the return of sold goods by customers to the seller for a refund or credit, often due to defects or dissatisfaction.

Cash Discount

A reduction in the invoice price granted by the seller to the buyer for paying within a prescribed time period.

Transportation Costs

Expenses incurred in moving goods from one location to another, such as freight and shipping fees.

Merchandise

Goods or products that are bought, sold, or traded in the retail environment.