Select the Entry That Correctly Records the Purchase by Speedy

question 24

Multiple Choice

Select the entry that correctly records the purchase by Speedy Window Cleaning of 15 months worth of cleaning supplies from Southern Cleaning. The purchase is for cash and the invoiced amount is $1500. Ignore GST.

• A) Debit cleaning supplies expense $1500; credit equity $1500
• B) Debit bank $1500; credit cleaning supplies asset $1500
• C) Debit cleaning supplies asset $1500; credit bank $1500
• D) Debit bank $1500; credit cleaning supplies expense $1500

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Definitions:

Separate Consideration

The distinct value or compensation given in exchange for a service or agreement, specifically identifiable apart from other considerations.

Unconscionable

Describes actions or conditions that are excessively unfair or immoral to a degree that they go against the basic principles of justice or good conscience.

Procedural Unconscionability

A legal concept where a contract or clause is considered unjust due to unfair or oppressive terms or conditions that were imposed upon one party, often due to unequal bargaining power.

Undue Influence

Improper or unfair persuasion by one party over another, often leading to decisions that are not in the victim's best interest.