In which category does each belong? Debit or credit? Purchased supplies on accou
ID: 2435012 • Letter: I
Question
In which category does each belong? Debit or credit?Purchased supplies on account totaling $1,500
Used supplies totaling $800 for various jobs
Job 1, direct labor (50hrs) $1,500
Job 2, " " (60hrs) $1,700
Job 3, " " (10hrs) $400
Indirect labor $900
Cost of services ?
Revenue ?
So far I have:
DEBIT:
WIP (job1) 2,000
WIP (job2) 2,300
WIP (job3) 500
CREDIT:
Direct wages 3,600
Overhead applied 1,200
Indirect wages 900
Supplies expense payable 800
I don't really know whether to put the purchase of supplies, cost of services, and revenue as debt or credit.
Explanation / Answer
the purchase of supplies - this will be Debit . Cause either your cash or A/P will be credit. Cost of services .. If you are providing services it will be credit and your Cash or Account recievable will be debited. on other hand, if services was provided to you by a supplier or vendor it will be debit and you cash will be credit. Revenue-will be debit.
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