In Module 1, you explained a purchase that you had made and the effect it would have had on your accounting equation.

Now that you are learning about debits/credits, how would your transaction be accounted for using debits and credits -- what account would be debited, and what account would be credited (make sure you indicate that type of account such as asset, liability, revenue, expense, etc).

What did you find was most challenging to initially understand from module 1 or 2? What makes it challenging? Even professional accountants can find these fundamental concepts confusing at first so think about what is challenging for you and why. As an example, why is having more expense a debit, decreases equity? Why is a debit card called a "debit" card when using it decreases your cash, but debit means an increase in cash? etc.

Answer rating: 100% (QA)

The transaction would be accounted for using debits and credits The account that would be debited is the inventory account and the account that would ... View the full answer