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This post addresses the correct entry for recording expenses

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Dr. Matt Donnelly operates a dental office outside of Mobile, Alabama. Recently he ordered a new dental chair for his patients since the older one was in poor condition. The Model 1880 by Dental Designs, Inc. sells for $12,680 (including tax) and shipping is $580 (including tax) FOB Destination.

Which of the following journal entries would Donnelly record if he wrote and mailed a check for the dental chair based on the invoice shipped with the chair on the day the chair was delivered?

Item Account(s) DEBIT CREDIT
A.) Merchandise Inventory $13,260
Cash $13,260
B. Office Equipment $12,680
Transportation In $580
Accounts Payable $13,260
C. Accounts Payable $13,260
Office Equipment $13,260
D. Office Equipment $12,680
Cash $12,680

Answer
1. Item D. is the correct journal entry.
2. Item C. is the correct journal entry.
3. Item B. is the correct journal entry.
4. Item A. is the correct journal entry.

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Solution Summary

The solution provides the correct answer with explanation for the question that asks,
Which of the following journal entries would Donnelly record if he wrote and mailed a check for the dental chair based on the invoice shipped with the chair on the day the chair was delivered?

$2.19
See Also This Related BrainMass Solution

prepaid expenses, adjusting entries

1. In the case of a prepaid expense, the adjusting entry required at the end of a period consists of a credit to Prepaid expense.
True
False

2. The entry to record depreciation includes a debit to which account?
Equipment
Cash
Accumulated depreciation
Depreciation expense

3. Which of the following statements is TRUE about the worksheet?
Net income is recorded in the income statement credit column.
Net income is recorded in the adjusted trial balance debit column.
Net income is recorded in the income statement debit column.
Net income is recorded in the balance sheet debit column.

4. If an adjusting entry includes a debit to Rent expense, that would indicate that the payment of rent had been previously recorded as a(n) ______ entry.
prepaid expense
depreciation
accrued expense
accrued revenue

5. At the end of the current year, the accountant for Navistar Graphics forgot to make an adjusting entry to accrue Wages payable to the company's employees for the last week in December. The wages will be paid to the employees in January. Which of the following is one of the effects of this error?
Net income is overstated.
Liabilities are overstated.
Net income is understated.
Expenses are overstated.

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