Sara Bernheat withdraws $700 cash from her business for personal use. The journal entry for this transaction will include a debit of $700 to

Question

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Sara Bernheat is withdrawing money for personal use from her business, which means she is reducing the business's assets. The appropriate account to record this reduction is Owner's Drawings, as it is a separate account that tracks the owner's withdrawals from the business. Owner's Capital would not be an appropriate choice as this account is used to track the owner's investment in the business, not their personal withdrawals. Owner's Salaries Expense and Salaries and Wages Expense are not appropriate choices as they are used to record payments made to employees, not withdrawals made by the owner.

Sara Bernheat Withdraws $700 Cash from Her Business for Personal