Multiple Choice
Compton Inc.made a $500 ordinary repair to a piece of equipment.Compton's accountant debited this amount to the asset account, Equipment, and credited Cash.Was this the correct entry and if not, why not?
A) Yes, this was the correct entry.
B) No, the correct entry would be a debit to Maintenance and Repairs Expense and a credit to Cash.
C) No, the correct entry would be a debit to Cash and a credit to Maintenance and Repairs Expense.
D) No, the correct entry would be a debit to Service Revenue and a credit to Cash.
Correct Answer:
Verified
Correct Answer:
Verified
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