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Journal Entries

The purpose of learning the definitions for Assets, Liabilities, Revenue, Expense, Drawings, and Capital is so you can record transactions correctly.

Cash                            100
Accounts Receivable       200
        Services                       125
        Parts                           175
    To record sale of services and related parts.

Please note:

1. debits equal credits
2. all debits come before credits
3. credits are indented
4. the narrative is indented half-way.