Depending on whether the account was for a customer

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Depending on whether the account was for a customer or a creditor, all the increases were recorded in one column of an account and all the decreases in the other. That made it easier to total up and get the net balance in those accounts. When combined with the concept of the accounting equation, this practice became the foundation of double entry accounting, which has been adopted and used throughout the world for over four centuries. The entries in the left columns of the ledger are debits, and entries in the right are credits. The Reflection below, like many others that follow, requires you to use your own ideas in your own words. Try not to turn to outside resources to find one single correct answer. If you feel that you must use the internet, make sure to cite all your sources in order to comply with the HBS Online Honor Code. Still, remember that the quoted content should only be in support of your own thoughts and analysis. Why do you think double entry accounting arose in Medieval Italy when it did?
How do you think accounting systems have changed in the centuries since then? How do you think technology may change accounting systems in the coming years?
2.1.3 Journal Entries On June 1, 2013, Cardullo's gourmet shop bought five cases of crunchy candy bars as inventory from a supplier for a total price of $135 and paid in cash. Crunchie candy bar is probably one of our best selling items. And it's also near and dear to my heart. It's one of my favorites in the shop. It's a toffee center. It's a candy bar that was created in the '40s by Cadbury. And it is literally one of our best selling chocolate bars. It's made with milk chocolate not the dark, and it has that wonderful toffee center that I talked about earlier. We purchased those for $0.75 a unit, and we retail them for $1.99. In the case pack is 36.
I probably purchased at least four to five cases every month because that's how many we sell. Cardullo's will need to increase its assets $135 to show the increase in inventory and decrease assets $135 to show the payment to the vendor. Every transaction affects the accounting equation and can be visualized as a journal entry. Journal entries follow a very specific format. And for Cardullo's the journal entry to record the purchase of five cases of Crunchie candy bars would look like this. Let's look closely at each part of this journal entry. One thing you should notice is the names of the accounts. In this case, inventory and cash. These are the accounts impacted by the purchase of the candy bars. You'll also notice that there are two columns-- one titled debit and the other credit.
Remember, debits on the left and credits on the right. The debit or credit column indicates whether the account should be increased or decreased as a result of the transaction.

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