A company purchases computer equipment from a supplier for $10,000 and pays $3,000 cash with the remaining amount owed on account. The transaction is records with a debit to Equipment for $10,000, credit to cash for $3,000, and a credit to Accounts Receivable for $7,000. What is the correction that needs to be made? 

Accounts Receivable should be fixed by debiting the account $7,000 and properly recording Accounts Payable as a credit of $7,000 

Accounts receivable should be debited by $7,000 and Notes Payable should be credited by $7,000 

Computer Equipment should be debited for $10,000 and Accounts Payable should be credited by $10,000 

Accounts Payable should be credited by $7,00

Answer rating: 100% (QA)

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