Question

For each of the following accounts indicate the effects of a debit and a credit on the accounts and the normal balance of the account.

1. accounts payable
2. advertising expense
3. service revenue
4. accounts receivable
5. retained earnings

Answer 1

Step-by-step explanation:

The following accounts have debit and credit balances

The assets and expenses side have debit balances. whereas, the revenue, stockholder equity, and the liability side have credit balances.

So, the effects would be displayed

Particulars Debit effect Credit effect Normal balance

1. Accounts payable Decrease Increase Credit

2. Advertising expense Increase Decrease Debit

3. Service revenue Decrease Increase Credit

4. Accounts receivable Increase Decrease Debit

5. Retained earning Decrease Increase Credit