The proper journal entry to purchase a computer costing $975 on account on January 2 to be utilized within the business would be:
A)
Supplies $\quad$975
Accounts Payable$\quad$975

B)Jan 2 Office Equipment $\quad 975$
Accounts Payable$\quad$$\quad$975

C)
Jan 2 Office Supplies $\quad 975$
Accounts Receivable$\quad$975
D) Jan 2 Office Equipment $\quad$975
Accounts Receivable$\quad$975

Question

The proper journal entry to purchase a computer costing $975 on account on January 2 to be utilized within the business would be:
A)
 Supplies $\quad$975
Accounts Payable$\quad$975

B)Jan 2 Office Equipment $\quad 975$
Accounts Payable$\quad$$\quad$975

C) 
Jan 2 Office Supplies $\quad 975$
Accounts Receivable$\quad$975
D) Jan 2 Office Equipment $\quad$975
Accounts Receivable$\quad$975

Quizplus · Accepted Answer

Office Equipment is an asset account and should be debited when a computer is purchased. Accounts Payable is a liability account and should be credited when a purchase is made on account.

The Proper Journal Entry to Purchase a Computer Costing $975 \quad

The Proper Journal Entry to Purchase a Computer Costing $975 $\quad$