Principles of Accounting, Part 4, Question 45

[Kiwi Lover]

I'm puzzled as to why this is a debit and not a credit. If you sell something for $12,000, doesn't that increase, not decrease, the cash account?

mstcrow,

I understand why you may be confused, because that is how it is treated with your bank account and how it shows on your bank statement (money that comes into the account gets credited, and money going out gets debited). But with accounting, it is the exact opposite, so just keep that in mind when you are dealing with the cash account when doing accounting.

JoAnne