Question

Transam mail service purchased equipment for $2,500. Transam paid $400 in cash and signed a note for the balance. Transam debited the equipment account, credited cash and?.

Answer 1

Step-by-step explanation:

a. nothing further must be done.

b. credited another asset account for $400.

c. credited a liability account for $2,100.

d. debited the retained earnings account for $2,100.