Cash had a normal starting balance of $600. There were debit postings of $200 and credit postings of $300 during the month. The ending balance is

Question

Quizplus · Accepted Answer

Starting balance: $600
Debit postings: $200
Credit postings: $300

To find the ending balance, we can add the debit postings (which decrease the balance) and subtract the credit postings (which increase the balance) from the starting balance:

$600 - $200 + $300 = $700

However, the question asks for the ending balance as either a debit or credit balance. A debit balance indicates more money was spent than received, while a credit balance indicates more money was received than spent.

Since the ending balance is $700, which is greater than the starting balance of $600, we know more money was received than spent, indicating a credit balance. To find the amount of the credit balance, we can simply subtract the ending balance from zero:

$0 - $700 = -$700, or $700 credit

Therefore, the correct answer is C) $500 debit.

Cash Had a Normal Starting Balance of $600