Question

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1. Paid Furniture Depot $1300 payment in full. The two accounts that are affected are? (Check all that apply)

Debit cash $1300

Debit Furn Depot $1300

Credit cash $1300

Credit Furn depot $1300

Answer 1

Debit Furniture Depot $1300

Credit cash $1300

Step-by-step explanation:

Both furniture and cash are assets held by the company.

When an asset increases, in this case we purchased furniture, we must debit the asset account. On the other hand, when an asset decreases, we have less cash since we paid for the furniture, we must credit the account.

The accounts must always be balanced.