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Your company is buying a business car with a $10,000 cash down payment and a $25,000 bank loan. Which of the following transactions best describes
Your company is buying a business car with a $10,000 cash down payment and a $25,000 bank loan. Which of the following transactions best describes how this purchase should be posted? Select the single best answer: A. debit Income $35,000; credit Vehicle Expense $35,000 B. debit Income $10,000; debit Equipment/Vehicles $25,000 C. credit Cash $10,000; credit Vehicle Loans Payable $25,000; debit Equipment/Vehicles $35,000 D. credit Income $35,000; credit Vehicle Expense $35,000 E. debit Cash $10,000; credit Vehicle Loans Payable $10,000
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