Ask Question
7 June, 10:37

For each of the following accounts, indicate the effect of a debit or a credit on the account and the normal balance.

(a) Accounts Payable

(b) Advertising Expense

(c) Service Revenue

(d) Accounts Receivable

(e) Retained Earnings

(f) Dividends

+3
Answers (1)
  1. 7 June, 14:30
    0
    a. Accounts Payable

    Effect of a debit - Decrease

    Effect of a credit - Increase

    Normal balance - Credit

    b. Advertising Expense

    Effect of a debit - Increase

    Effect of a credit - Decrease

    Normal balance - Debit

    c. Service Revenue

    Effect of a debit - Decrease

    Effect of a credit - Increase

    Normal balance - Credit

    d. Accounts Receivable

    Effect of a debit - Increase

    Effect of a credit - Decrease

    Normal balance - Debit

    e. Retained Earnings

    Effect of a debit - Decrease

    Effect of a credit - Increase

    Normal balance - Credit

    f. Dividends

    Effect of a debit - Increase

    Effect of a credit - Decrease

    Normal balance - Debit

    Explanation:

    Debit balances for example expenses and assets such as cash, accounts receivable, inventory etc. are increased by debits and decreased by credits.

    Credit balances for example revenue, share capital, retained earnings, liabilities such as accounts payable, debt etc. are increased by credits and decreased by debits.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “For each of the following accounts, indicate the effect of a debit or a credit on the account and the normal balance. (a) Accounts Payable ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers