The proper journal entry to purchase a computer costing $975 on account to be utilized within the business would be
A) Office Supplies 975
Accounts Payable 975
B) Office Equipment 975
Accounts Payable 975
C) Office Supplies 975
Accounts Receivable 975
D) Office Equipment 975
Accounts Receivable 975

Question

Quizplus · Accepted Answer

Since the computer is an Office Equipment, it should be recorded under this account. The purchase is being done on account, therefore, it should be recorded under Accounts Payable. Therefore, the proper journal entry would be:
Office Equipment     975
Accounts Payable     975

The Proper Journal Entry to Purchase a Computer Costing $975