Reference no: EM132624189

Problem 1: When credit clients pay their balance due, we record this as

Option 1: debit to Cash and credit to Accounts Receivable

Option 2: a debit to Cash and a credit to Accounts Payable

Option 3: a debit to Accounts Receivable and credit to Cash

Option 4: a debit to Accounts Payable and credit to Cash

Problem 2: Equipment that cost $4,000 is purchased by issuing a check for $500 and the remainder on account due in 30 days. A credit to Accounts Payable would be made for how much? (do not enter dollar signs)

Option 1: $4,000

Option 2: $500

Option 3: $0

Option 4: $3,500