Lou purchased his truck for $32,000. He paid $2,000 cash and took out a $30,000, 5-year loan.
Select the correct journal entry below.
A) Date Description Debit Credit
Feb. 6 Purchase of truck
Plant, Property, Equipment$32,000 Cash $2,000
Plant, Property, Equipment$32,000
Loan Payment $30,000
B) Date Description Debit Credit
Feb. 6 Purchase of truck
Plant, Property, Equipment $32,000 Cash $2,000
Loan Payment $30,000
C) Date Description Debit Credit
Feb. 6 Purchase of truck
Plant, Property, Equipment$32,000 Cash $2,000
Loan Payment $30,000
