Hennigan Company

Use the five transactions for Hennigan Company described below to answer the question(s) that follow(s).

Dec 1	Hennigan purchases two new saws on credit at $375 each. The saws are added to Hennigans rental inventory. Payment is due in 30 days.
8	Hennigan accepts advance deposits for tool Company of $75.
15	Hennigan receives a bill from Farmers Electric Company for $150. Payment is due in 30 days.
20	Customers are charged $750 by Hennigan for tool Company. Payment is due from the customers in 30 days.
31	Hennigan receives $500 in payments from the customers that were billed for Company on December 20.

Refer to the transactions for Hennigan Rentals. Based on the December 15 transaction, Hennigan will record which of the following in its accounting records?

a credit in Accounts Payable for $150.

a credit in Accounts Receivable for $150.

a debit in Accounts Payable for $150.

a debit in Accounts Receivable for $150.