Dr. Matt Donnelly operates a dental office outside of Mobile, Alabama. Recently

Question

Dr. Matt Donnelly operates a dental office outside of Mobile, Alabama. Recently he ordered a new dental chair for his patients since the older one was in poor condition. The Model 1880 by Dental Designs, Inc. sells for $12,680 (including tax) and shipping is $580 (including tax) FOB Destination.

Which of the following journal entries would Donnelly record if he wrote and mailed a check for the dental chair based on the invoice shipped with the chair on the day the chair was delivered.

Item D. is the correct journal entry.

Item C. is the correct journal entry.

Item B. is the correct journal entry.

Item A. is the correct journal entry.

Item Account(s) DEBIT CREDIT A. Merchandise Inventory $13,260       Cash $13,260 B. Office Equipment $12,680 Transportation In $580      Accounts Payable $13,260 C. Accounts Payable $13,260       Office Equipment $13,260 D. Office Equipment $12,680      Cash $12,680

Explanation / Answer

That dental chair is office equipment and when shipping is on FOB destination then its means frreight is born by seller.

So answer is

So answer is 1) Item D. is the correct journal entry.

Date account and explanation debit credit Office equipment 12680 Cash 12680

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.