On October 3, Karl Schickele, a carpenter, received a cash payment for services previously billed to a client. Karl paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a
A) credit to Retained Earnings.
B) credit to Notes Payable.
C) debit to Accounts Receivable.
D) credit to Accounts Payable.

Question

Quizplus · Accepted Answer

Since Karl bought equipment on credit, there will be a credit to Accounts Payable.

On October 3, Karl Schickele, a Carpenter, Received a Cash