Dennis, owner of Dennis' Golf Center, withdrew $700 in cash from the business. Record the transaction by
A) debiting Dennis, Withdrawals, $700; crediting Cash, $700.
B) debiting Accounts Receivable, $700; crediting Cash, $700.
C) debiting Expense, $700; crediting Cash, $700.
D) debiting Dennis, Withdrawals, $700; crediting Dennis, Capital, $700.

Question

Quizplus · Accepted Answer

When the owner withdraws cash from the business, it is recorded as a debit to the owner's withdrawal account and a credit to the cash account. Option A correctly identifies these accounts and records the transaction properly. Option B is incorrect because it involves an accounts receivable account, which is not relevant to this transaction. Option C is also incorrect because there is no expense involved in this transaction. Option D is incorrect because the owner's capital account is not affected by a withdrawal of cash.

Dennis, Owner of Dennis' Golf Center, Withdrew $700 in Cash