Preparing T-Accounts,

Start by identifying which accounts are affected by each transaction.
	It is always two, and they will balance each other out (one debit and one credit).
Then determine whether the impact on each account is a debit or credit.
	It will be a debit to one account and a credit to the other.
To find the balances, it helps to know whether the normal balance is a credit or debit.
	Note normal balances are always on the increase side.

A.	Provided services to customers for cash	$ 2,500
B.	Provided services to customers on account (credit)	2,900
C.	Purchased supplies on accounts (using credit)	800
D.	Paid vendors for supplies previously delivered	650
AND.	Collected cash from customer accounts	1,600

		Cash			Accounts Receivable
	A.	$ 2,500			B.	$ 2,900
	AND.	$ 1,600			AND		$ 1,600
	D		$ 650
		$ 3,450				$ 1,300
		Revenue			Accounts Payable
	A.		$ 2,500		C		$ 800
	B.		$ 2,900		D	$ 650
			$ 5,400				$ 150
		Inventory			Sum of Debits	$ 5,550
	C	$ 1,600				Sum of Credits	$ 5,550
						Check:	$ -
		$ 1,600

Answer rating: 100% (QA)

Analyze the Transaction Type Understand the nature of the transactionIs it a salepurchasepaymentrece... View the full answer