For purchase of machinery on credit, following journal entry will be passed.
A. Merchandise- debit and accounts payable- credit
B. Asset debit- and accounts payable- credit
C. Machinery- debit and accounts payable- credit
D. Machinery- debit and cash- credit
Answer:C
For purchase of machinery on credit, following journal entry will be passed.
A. Merchandise- debit and accounts payable- credit B. Asset debit- and accounts payable- credit C. Machinery- debit and accounts payable- credit D. Machinery- debit and cash- credit