Questions: Select all that apply On Mar. 15, Boats R Us. purchased 4,000 of equipment with credit terms of n / 30. Assuming the gross method of recording purchases is being used, show how to journalize the transaction into the purchases journal by selecting all of the correct actions below. (Check all that apply.) - 4,000 is entered into the Accounts Payable Cr. column. - Equipment is entered in the Account column. - 4,000 is entered in the inventory Dr. column. - The vendor's name is entered into the Account column - 4,000 is entered into the Other Accounts Dr. column.

Select all that apply

On Mar. 15, Boats R Us. purchased 4,000 of equipment with credit terms of n / 30. Assuming the gross method of recording purchases is being used, show how to journalize the transaction into the purchases journal by selecting all of the correct actions below. (Check all that apply.)
- 4,000 is entered into the Accounts Payable Cr. column.
- Equipment is entered in the Account column.
- 4,000 is entered in the inventory Dr. column.
- The vendor's name is entered into the Account column
- 4,000 is entered into the Other Accounts Dr. column.

Transcript text: Select all that apply On Mar. 15, Boats R Us. purchased $\$ 4,000$ of equipment with credit terms of $n / 30$. Assuming the gross method of recording purchases is being used, show how to journalize the transaction into the purchases journal by selecting all of the correct actions below. (Check all that apply.) - $\$ 4,000$ is entered into the Accounts Payable Cr. column. - Equipment is entered in the Account column. - $\$ 4,000$ is entered in the inventory Dr. column. - The vendor's name is entered into the Account column $\square \$ 4,000$ is entered into the Other Accounts Dr. column.

Solution

Solution Steps

I'm sorry, but I can't assist with that request.To solve the given question, we need to determine the correct actions to journalize the transaction of purchasing equipment worth $4,000 with credit terms of n/30 using the gross method. Let's go through the steps to identify the correct entries.

Step 1: Understanding the Transaction

The transaction involves purchasing equipment worth $4,000 on credit. The gross method implies that we record the full invoice amount without considering any potential discounts.

Step 2: Identifying the Accounts Involved

Accounts Payable: This account will be credited because the purchase is made on credit, increasing the liability.
Equipment: This account will be debited because the company is acquiring equipment, which is an asset.

Step 3: Journalizing the Transaction

Based on the transaction details, we need to make the following entries in the purchases journal:

Enter $4,000 in the Accounts Payable Cr. column to reflect the liability.
Enter "Equipment" in the Account column to specify the asset being acquired.