The retained earnings account has a credit balance, and credit entries are used to record increases in

Question:

The retained earnings account has a credit balance, and credit entries are used to record increases in this account. Explain why expense accounts (which are transferred to retained earnings when they are closed) have debit balances, and debit entries are used to record increases in these accounts.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting A User Perspective

ISBN: 978-0470676608

6th Canadian Edition

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

Question Posted: