Hello,
I am just beginning accounting and it has been going pretty smoothly until now.
In my problem 4,500 dollars in repair parts has been used in one month. There is an existing T account , Repair Parts Inventory, that i know to debit the 4,500 to. I just do not have any idea where to credit this amount. Can you please help me?
My existing T accounts are cash, capital, a/r,a/p,prepaid rent,shop equipment and unearned revenue. Do I create another T account to fit the 4,500 into or use one of these existing T accounts? I know that this is not a cash amount, it's inventory, I just don't know where the inventory goes.
Thank you
Smcleish

jan96ken

I am just beginning accounting and it has been going pretty smoothly until now.
In my problem 4,500 dollars in repair parts has been used in one month. There is an existing T account , Repair Parts Inventory, that i know to debit the 4,500 to. I just do not have any idea where to credit this amount. Can you please help me?
My existing T accounts are cash, capital, a/r,a/p,prepaid rent,shop equipment and unearned revenue. Do I create another T account to fit the 4,500 into or use one of these existing T accounts? I know that this is not a cash amount, it's inventory, I just don't know where the inventory goes.
Thank you

On your T Account, did you originally debit Repair Parts inventory when you purchased the items?

If so,
I think you would credit Repair Parts Inventory $4,500
(because you used the parts and are reducing the inventory)

The debit should be to an expense account(Repair Parts Expense)