If services for the month total $7,000 in cash and $1,500 on account, the revenue
account increases $8,500.
In using a combination journal, posting requires less time; however, the danger of
making a posting error is increased.
Source documents begin the process of entering transactions in the accounting system.
When it is necessary to replenish the petty cash fund, the petty cashier prepares a
statement of payments.
An amount entered on the left side of an account is called a(n)
____________________.
Assets, liabilities, and the owner’s capital account are permanent accounts.
To close the drawing account with a debit balance, credit the account for its balance and
debit the owner’s capital account.