Indicate the account(s) to be debited and credited to record the following transactions.
-The business bought store equipment on account.
Debit ________ Credit ________
A)Cash
B)Accounts receivable
C)Allowance for doubtful accounts
D)Merchandise inventory
E)Store supplies
F)Store equipment
G)Accumulated depreciation
H)Notes payable
I)Accounts payable
J)John Partner's, Capital
K)Joy Partner's, Capital
L)John Partner's, withdrawals
M)Joy Partner's, withdrawals
N)Income summary
O)Service revenue
P)Gain on realization
Q)Loss on realization

Question

Quizplus · Accepted Answer

When a business buys store equipment on account, the store equipment account is debited because the business is acquiring a new asset, and the accounts payable account is credited because the business is incurring a liability that it promises to pay in the future.

Indicate the Account(s) to Be Debited and Credited to Record