Double entry bookkeeping

• Double entry accounting says that every accounting entry must have a corresponding opposite entry in a different account
• The owner of a car wash provides their company with $1000 initial investment.

  what is the entry to the company‘s cash account?

  debit
• what is the entry to owners equity of $1000 cash investment being added into the account?

  credit owners equity

  $1000
• the car wash pays a supplier $200 in cash which account is debited?

  accounts payable
• a customer gets their car washed for $10.

  They pay on account with 30 days credit terms

  which account is credited?

  revenue
• the following month, the car wash receives $10 from the customer. which account is credited?

  accounts receivable