A Furniture Company Purchases a New Milling Machine Costing $350

Multiple Choice

A furniture company purchases a new milling machine costing $350 000 on account. Which of the following statements is true?

A) This transaction would be recorded in the purchases book and would include a credit to Cash.
B) This transaction would be recorded in the cash payments book and would include a debit to Purchases.
C) This transaction would be recorded in the general journal and would include a credit to Payables/Creditors.
D) This transaction would be recorded in the general journal and would include a credit to Equipment.