Compton Inc. made a $500 ordinary repair to a piece of equipment. Compton\'s acc

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? O Yes, this was the correct entry. O No, the correct entry would be a debit to Maintenance and Repairs Expense and a credit to Cash. No, the correct entry would be a debit to Cash and a credit to Maintenance and Repairs Expense. O No, the correct entry would be a debit to Service Revenue and a credit to Cash.

Explanation / Answer

Option b is correct

No , the correct entry is debited to maintenance and repairs expense and credit to cash

Explanation:

As cash is paid so it is credited.

It is ordinary repair, so it is debited in maintenance and repair expense not in asset account.

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