Study Appendix 15 B. Determine for the following transactions whether the account named in parentheses is to be debited or credited:
1. Paid rent in advance (Prepaid Expenses), $1,200
2. Bought merchandise on open account (Accounts Payable), $5,000
3. Borrowed money from First National Bank (Notes Payable), $12,000
4. Sold merchandise (Merchandise Inventory), $1,000
5. Paid O’Brien Associates $3,000 owed them (Accounts Payable)
6. Paid dividends (Cash), $500
7. Delivered merchandise to customers (Merchandise Inventory), $3,000
8. Received cash from customers on accounts due (Accounts Receivable), $2,000