Explain the reason why revenues are recorded as credit and expenses as debit.

Question

Want to see the full answer?

Answer 1

Question

Chapter 3, Problem 9Q

To determine

Explain the reason why revenues are recorded as credit and expenses as debit.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Silver Enterprises started the year with the following: Assets $70,000; Common Stock $20,000; Retained Earnings $10,000. During the year, the company earned revenue of $25,000, all of which was received in cash, and incurred expenses of $20,000, half of which were unpaid as of the end of the year. In addition, the company paid dividends of $5,000 to owners. Assume no other activities occurred during the year. Determine the amount of Silver's liabilities at the end of the year.

How much gross profit was realized from this sale on this general accounting question?

Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows: Amount Per Unit Direct materials $ 6 Direct labor $ 3.50 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4 Fixed selling expense $ 3 Fixed administrative expense $2 Sales commissions $ 1 $ 0.50 Variable administrative expense Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? 3. If 8,000 units are sold, what is the variable cost per unit sold? 4. If 12,500 units are sold, what is the variable cost per unit sold?