Colors Company purchased a piece of machinery for $4,000. The company paid $1,500 at the time of the purchase, and agreed to pay the remaining $2,500 one month later. The entry to record this transaction would include which of the following elements?

Multiple Choice

• The Accounts Payable account displayed on the top line

• The Machinery account displayed on the line immediately above the description

• The Cash account indented about one-half inch from the left margin

• The Accounts Payable account indented about one inch from the left margin