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17 download_doc-4.php - A311(1/29/09) 2.6...

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A311 (1/29/09) 2.6  Acct Information Systems Structure (See Lecture Notes) 2.7 Basic Accounting Mechanics The form of accounting entries      ---------------- Consider the following acct. entries: debit?  Allowance for bad debts xxxx      credit? credit?             Bad debt expense        xxxx             debit? Entry is ambiguous because it’s not clear which account is being “debited” and which is  “credited.” Most common, computerized acct systems avoid ambiguity by forming entries as: Allowance for bad debts….xxxx  … +   “Debit” Bad debt expense…………. .(xxxx) … –   “Credit” So…this implies:   Debit   Debit -Credit (Credit) Increase in Assets….     xxx     xxx Increase in Liabilities….    -xxx    (xxx) Decrease in Assets….    -xxx    (xxx) Decrease in Liabilities….     xxx     xxx Etc. Basic Types of Acct Entries
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This note was uploaded on 04/18/2011 for the course BUS 311 taught by Professor Palmer during the Winter '11 term at Indiana.

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17 download_doc-4.php - A311(1/29/09) 2.6...

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