Juan Ybarra withdraws $300 cash from his business for personal use. The entry for this transaction will include a debit of $300 to

Question

Quizplus · Accepted Answer

Withdrawing cash for personal use is considered a drawing, which is a reduction in the owner's equity. Therefore, the correct account to debit is Juan Ybarra, Drawing, which represents the owner's personal withdrawals. The other accounts listed (Capital, Owner's Salary Expense, and Salaries Expense) are not applicable to this transaction.

Juan Ybarra Withdraws $300 Cash from His Business for Personal