QUESTION 19 At the end of the month employees have made the

QUESTION 19 At the end of the month, employees have made the following expenditures from the petty cash fund and with company-issued credit cards. None of these transactions has been recorded previously. Supplies (petty cash)-$50 Delivery (petty cash) $75 Advertising (credit card) $1,100 Equipment (credit card) $4,200 Accounting for these employee purchases would include a: O Credit to Petty Cash for $5,425. O Credit to Accounts Pivable for $5.300 O Credit to Equipment for $4,200. O Debit to Accounts Receivable for $5,300

Solution

As payment of advertising and equipment is made from the credit card and credit card is used to borrow money or busy products and services on credit. So It is a liability. Hence payment made through credit card is shown as accounts payable and the accounts payable is shown under the head liabilities.

So correct answer is credit to Accounts Payable for $5300