Final answer:
The question relates to identifying debited and credited accounts for transactions in a business or accounting setting, specifically in the WileyPlus platform. Debits are entries on the left side of an account that increase assets or expenses or decrease liabilities, equity, or revenue. Credits are entries on the right that do the opposite.
Step-by-step explanation:
The student's question asks for assistance with identifying which accounts to be debited and credited in given transactions, which relates to the fundamental concepts of accounting practices. In the context of WileyPlus answers, this is an exercise commonly encountered in business and accounting coursework. To successfully answer questions about account transactions, you must first understand the basics of the double-entry accounting system, which ensures that for every financial transaction, equal and opposite effects are recorded in at least two different accounts.
Understanding Debits and Credits
Debits and credits are the backbone of the accounting system. In simple terms, a debit is an entry on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue. Conversely, a credit is an entry on the right side of an account, representing an increase in liabilities, equity, or revenue, or a decrease in assets or expenses.
Examples of Transaction Analysis
- When a company sells goods on credit, it would debit Accounts Receivable and credit Sales Revenue.
- When purchasing supplies for cash, it would debit Supplies (an expense) and credit Cash.
It's important to identify the two (or more) accounts affected by a transaction and determine whether each account should be debited or credited based on the nature of the transaction.