On May 10, 2019, ABC Company purchased equipment for $12,000, paid $5,000 cash and the remaining on account. On May 15, 2019, the company paid 40% of the amount due.

1) The credit side of May 10 entry should include: *

a) Equipment $12,000

b) Accounts Payable $7,000

c) Cash $2,800

d) All of the above

2) The entry of May 15 will include Account Payable of: *

a) $7,000

b) $4,200

c) $2,800

d) $4,800

3) What is the remaining balance due from the purchase of the equipment? *

a) $7,000

b) $4,200

c) $2,800

d) $4,800