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Question
compton inc. made a $500 ordinary repair to a piece of equipment. compton's accountant debited this amount to the asset account, equipment and credited cash. was this the correct entry and if not, why not?
a.yes, this was the correct entry
b.no, the correct entry would be a debit to repairs expense and a credit to cash
c.no, the correct entry would be a debit to cash and a credit to repairs expense
d.no, the correct entry would be a debit to service revenue and a credit to cash
Answer
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