Able Company purchased a truck worth $20,000. The company paid $5,000 in cash and incurred a bank

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Able Company purchased a truck worth $20,000. The company paid $5,000 in cash and incurred a bank loan for the difference. The general ledger account effects are:

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A:Truck is debited for $15,000, Cash is credited for $5,000 and Bank Loan is credited for $15,000

B:Bank Loan is debited for $20,000, Cash is credited for $5,000 and Truck is credited for $15,000

C:Truck is debited for $20,000, Cash is credited for $5,000 and Bank Loan is credited for $15,000

D:Truck is debited for $20,000 and Bank Loan is credited for $20,000

Related Book For answer-question

Personal Financial Planning

ISBN: 978-1111971632

13th edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley

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Posted Date: Nov 16, 2022 02:31 AM

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Able Company purchased a truck worth $20,000. The company paid $5,000 in cash and incurred a bank

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C Truck is Debited for 20000 Cash i... View the full answer

Personal Financial Planning

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