Question

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be a. Cash2,250 Accounts Payable6,250 Equipment8,500 b. Equipment8,500 Accounts Payable6,250 Cash2,250 c. Equipment Expense8,500 Accounts Payable2,250 Cash6,250 d. Equipment2,250 Cash2,250

Answer 1

Answer: c. Equipment Expense8,500 Accounts Payable2,250 Cash 6,250

Explanation:

From the question, we are informed that Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The amount to be paid later will b: 8500 - 2250 = 6250

The correct entry would therefore be:

Debit: Equipment A/c $8,500

Credit: To Accounts Payable A/c $6,250

Credit: To Cash A/c $2,250

(The journal entry to record the purchase of equipment)

Therefore, the correct option is C