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A local contractor buys a new excavator for $20,000 on account. Which of the following is the correct journal entry to record this transaction? Debit
A local contractor buys a new excavator for $20,000 on account. Which of the following is the correct journal entry to record this transaction?
Debit the equipment account for $20,000 and credit the cash account for $20,000.
Debit the equipment account for $20,000 and credit accounts payable account for $20,000
Debt the equipment expense account for $20,000 and credit accounts payable account for $20,000
Debit the accounts receivable account for $20,000 and credit equipment account for $20,000.
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