Asked by Anonymous
Andy, an inexperienced accountant, had to account for his company's purchase of a motorcar on credit. Unsure of the correct accounting entries, Andy debited the supplier's account and credited the motor expenses account. Was Andy correct?
Answers
Answered by
working hard
Andy is correct
Answered by
Kay
No he should have credited the motor car as either inventory ( depending on the type of company he worked for) or an asset and the he should have credited the Accounts Payable account because the machine was brought on credit therefore it is a liability to the company and must be repaid at sometime in the future.
Answered by
Anonymous
es. Andy's recording of the transaction was correct.
Answered by
Meg
Correct
Answered by
ingrid
Andy, an inexperienced accountant, had to account for his company's purchase of a motorcar on credit. Unsure of the correct accounting entries, Andy debited the supplier's account and credited the motor expenses account. Was Andy correct?
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