The beginning balance in the Computers account was $2,500. The company purchased an additional $500 worth of computers. The balance in the account is
A) debit of $2,000.
B) credit of $3,000.
C) debit of $3,000.
D) credit of $2,000.

Question

Quizplus · Accepted Answer

The beginning balance of $2,500 is a debit because it represents an asset. The purchase of $500 worth of computers is also a debit because it represents an increase in the asset. Therefore, the total balance in the Computers account is $3,000, which is a debit. Choice C is the only option that reflects this.

The Beginning Balance in the Computers Account Was $2,500