Oracle Exam 1z0-1055 Topic 8 Question 18 Discussion

Actual exam question for Oracle's 1z0-1055 exam

Question #: 18
Topic #: 8

An Office supplies company requires an advance payment of $8000 for the office supplies you wish to order. You enter and pay a prepayment type invoice for $8000. You enter the standard invoice to book the expense which totals $10000 and you apply the prepayment to the standard invoice.

What are the accounting entries for that standard invoice with the prepayment application?

AInvoice accounting - Dr Prepayment Account 10000 Cr AP Liability Account 10000.The prepayment application has no impact on the Invoice.

BInvoice accounting - Dr Expense Account 10000 Cr AP Liability Account 10000.Prepayment application - Dr AP Liability 8000 Cr Prepayment Account 8000.

CInvoice Accounting - Dr Prepayment Account 10000 Cr AP Liability Account 10000.Prepayment application - Dr Expense Account 8000 Cr Prepayment Account 8000.

DInvoice accounting - Dr Expense Account 10000 Cr AP Liability Account 10000.Prepayment application - Dr AP Liability Account 2000 Cr Prepayment Account 2000.

Show Suggested Answer

Suggested Answer: A

by Loren at May 07, 2022, 05:01 PM

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