Emerald Co. owned equipment with a book value of $72,000 that was sold during this accounting period for $18,300 in cash, and purchased new equipment for cash of $88,800. Emerald Co. would record a debit of:
A. $88,800 and a credit of $53,700 to the cash account for a net cash inflow of $35,100.
B. $18,300 and a credit of $88,800 to the cash account for a net cash outflow of $70,500.
C. $53,700 and a credit of $88,800 to the cash account for a net cash outflow of $35,100.
D. $88,800 and a credit of $18,300 to the cash account for a net cash inflow of $70,500.
Answer: B
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