ACCOUNT TITLES ASSETS DEBIT ( + )
CASH ✔ Investment of owner ✔ Withdrawal of owner
✔ Service performed for cash
✔ Collection of an account
✔ Refund received for
returned goods
✔ Cash received from bank
loans
✔ Sales of PPE
Account Receivable ✔ services performed on
account
✔ Sold goods merchandise
on credit or account
✔ Billed to customers on
account
Notes Receivable ✔ Received a Promissory
Note from a customer
Office Supplies ✔ Purchase/bought/acquire
office supplies for use
MERCHANDISE
INVENTORY
Periodic Inventory System ✔ Ending Inventory
Perpetual Inventory
✔ Purchase of Goods for cash
✔ Purchase of Goods on
Account
✔ Freight In
Prepaid Expenses ✔ Paid expenses in advance
Property, Plant, and ✔ Purchase/acquired/bought
Equipment a PPE.
 Land ✔ Investment of owner of any
 Building
PPE
CREDIT ( - )
✔ Payment of bill/expense
✔ Purchase of an asset
✔ Payment of liability
✔ Paid purchase for cash
✔ Paid merchandise for cash
✔ Paid supplies for cash
✔ Refund to customers for
returned goods
✔ The collection made to a
customer on account
✔ PN is already paid
✔ Used/consumed office
supplies
✔ When Beginning Inventory
is closed
✔ Return of goods
✔ Purchase discount
✔ Sale of Goods at Cost (2nd
entry in a sales transaction )
✔ Recognition of the
expense/ consumed portion
✔ Sale of PPE