Multiple Choice
Which of the following scenarios could explain the journal entry below?
A) The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit.
B) The company receives $4,000 in cash and $6,000 in notes payable for selling 10,000 of equipment.
C) The company buys $10,000 of equipment,for $4,000 cash and a promise to cancel $6,000 of debt owed to it.
D) The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.
Correct Answer:

Verified
Correct Answer:
Verified
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