A firm purchased equipment for $3,000 on credit and issued a 180-day note bearing interest at 8 percent as evidence of the debt. The journal entry to record this transaction is: 

Multiple Choice 

debit Equipment for $3,000, and credit Notes Payable for $3,000. 

debit Equipment for $3,000 and credit Accounts Payable for $3,000. 

debit Equipment for $3,120 and credit Notes Payable for $3,120. 

debit Equipment for $3,000, debit Interest Expense for $120, and credit Notes Payable for $3,120.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct journal entry is Debit Equi... View the full answer