An accountant has debited an expense account for $1,000 and credited an asset account for $500. Which of the following would be a correct way to complete the recording of the transaction?
A) Debit an asset account for $500.
B) Credit a liability account for $500.
C) Debit an owner's equity account for $500.
D) Debit a liability account for $500.

Question

Quizplus · Accepted Answer

To balance the transaction, a credit of $500 is needed. Crediting a liability account for $500 will balance the debits and credits.

An Accountant Has Debited an Expense Account for $1,000 and Credited