gently laser clinic purchased laser equipment for $4,986 and paid $794 down, with the remainder to be paid…

gently laser clinic purchased laser equipment for $4,986 and paid $794 down, with the remainder to be paid later. the correct entry would be\na. cash 794\n equipment 794\nb. equipment 4,986\n accounts payable 4,192\n cash 794\nc. cash 794\n accounts payable 4,192\n equipment 4,986\nd. equipment 794\n cash 794\ne. equipment expense 4,986\n accounts payable 794\n cash 4,192

gently laser clinic purchased laser equipment for $4,986 and paid $794 down, with the remainder to be paid later. the correct entry would be\na. cash 794\n equipment 794\nb. equipment 4,986\n accounts payable 4,192\n cash 794\nc. cash 794\n accounts payable 4,192\n equipment 4,986\nd. equipment 794\n cash 794\ne. equipment expense 4,986\n accounts payable 794\n cash 4,192

Answer

Brief Explanations:

When the clinic purchases equipment for $4,986 and pays $794 down - payment in cash, the Equipment account is debited for the full cost of the equipment ($4,986) as it is an asset being acquired. The Cash account is credited for the amount paid ($794) and Accounts Payable is credited for the remaining amount ($4,986 - $794 = $4,192) which is the amount to be paid later.

Answer:

B. Equipment 4,986 Accounts Payable 4,192 Cash 794