Prepare a journal entry for the purchase of a truck on april 4 for $85,700, paying $15,000 cash and the remainder on account. refer to the chart of accounts for exact wording of account titles.

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Gibbs

Business

29 January, 07:48

Prepare a journal entry for the purchase of a truck on april 4 for $85,700, paying $15,000 cash and the remainder on account. refer to the chart of accounts for exact wording of account titles.

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Tyson Wolfe · Answer 1

To prepare a journal entry in this transaction you first need to know what is the main transaction in this entry. First on April 4, a debit for truck for $85,700 and then you pay for the amount of $15,000 so, credit for cash for $15,000 and accounts payable for 70,700.

April 4 Truck $85,700

Cash $15,000

Accounts payable $70,700