skip4
Jun 6, 2007, 12:26 PM
Hi,
For a homework assignment, I am trying to put together an income statement for a company and am recording the transactions on T-Accounts. The transaction states "Parts inventory from the beginning of the month was depleted by $1,200." Because inventory is an asset and it decreased, I know that the Inventory T-account needs to be credited. But I cannot figure out the other account that needs to be debited.
Thanks!
For a homework assignment, I am trying to put together an income statement for a company and am recording the transactions on T-Accounts. The transaction states "Parts inventory from the beginning of the month was depleted by $1,200." Because inventory is an asset and it decreased, I know that the Inventory T-account needs to be credited. But I cannot figure out the other account that needs to be debited.
Thanks!