A Business Purchases Equipment Costing $5,500

Multiple Choice

A business purchases equipment costing $5,500. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:

A) Debit Equipment $5,500; Credit Cash $1,500 and Credit Accounts Payable $4,000
B) Debit Equipment $5,500; Credit Accounts Payable $5,500
C) Debit Equipment $4,000; Credit Accounts Payable $4,000
D) Debit Equipment $1,500; Credit Cash $1,500