Which is the best explanation for this journal entry?
A) Purchased equipment, paid cash of $5,000, with the remainder to be paid in the future.
B) Purchased equipment, paid cash of $10,000, with the remainder to be received in the future.
C) Purchased equipment, paid cash for the entire amount.
D) Purchased equipment on credit.

Question

Which is the best explanation for this journal entry?
A) Purchased equipment, paid cash of $5,000, with the remainder to be paid in the future. 
B) Purchased equipment, paid cash of $10,000, with the remainder to be received in the future. 
C) Purchased equipment, paid cash for the entire amount. 
D) Purchased equipment on credit.

Quizplus · Accepted Answer

The journal entry indicates that equipment was purchased, with $5,000 paid in cash and the remainder to be paid in the future, suggesting that the purchase was made on credit.

Which Is the Best Explanation for This Journal Entry