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Some of MAC's transactions during the month of January are as follows
Some of MAC's transactions during the month of January are as follows. Which transaction, if any, is recognised as an expense for the month of January?
Paid a supplier $200 for goods purchased on credit in November.
Purchased a motor vehicle for $25 000 cash.
Purchased stationery to the value of $125 on credit, to be paid for in February.
Paid $10 000 off a loan obtained during December.
Expert Solution
Amount paid to supplier for purchase of goods on credit is already recorded in the month of November at the time of purchase therefore it it will not be recorded in the month of January.
Moreover amount paid to purchase a motor vehicle is not a type of expense, also any repayment of loan which is obtained previously will not be categorised as an expense.
But stationery purchased on credit given this to be paid in the month of February but the expense will be recorded as on the date when the Purchase is made therforr this transaction will be recorded as an expense for the month of January.
So the correct option is purchased stationery to the value of $ 125 on credit to be paid for in February.
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