question 3 out of 5\nkathy purchased new furniture for $10,000. she put $1,000 down and financed $9,000. she…

question 3 out of 5\nkathy purchased new furniture for $10,000. she put $1,000 down and financed $9,000. she will pay $350 per month until the loan is paid off. which of the following are true?\nthe $9,000 is entered as a liability on kathys balance sheet.\nthe furniture should be recorded as a $1,000 expenditure on kathys balance sheet.\nthe furniture should be recorded as an asset of $10,000 on kathys balance sheet.\nsubmit

question 3 out of 5\nkathy purchased new furniture for $10,000. she put $1,000 down and financed $9,000. she will pay $350 per month until the loan is paid off. which of the following are true?\nthe $9,000 is entered as a liability on kathys balance sheet.\nthe furniture should be recorded as a $1,000 expenditure on kathys balance sheet.\nthe furniture should be recorded as an asset of $10,000 on kathys balance sheet.\nsubmit

Answer

Brief Explanations:

Liabilities are amounts owed. The $9,000 loan is a debt, so it's a liability. Assets are resources owned. The furniture worth $10,000 is an asset Kathy owns. The $1,000 down - payment is not an expenditure on the balance sheet in this context.

Answer:

The $9,000 is entered as a liability on Kathy's balance sheet. The furniture should be recorded as an asset of $10,000 on Kathy's balance sheet.