Consider the following list of accounts: a. Accounts receivable b. Supplies c. Prepaid rent d. Furniture e.

Question:

Consider the following list of accounts:
a.
b. Supplies
c. Prepaid rent
d. Furniture
e. Accumulated depreciation—furniture
f. Accounts payable
g. Unearned service revenue
h. Service revenue
i. Rent expense
Requirement
1. Explain what a normal balance in each account means. For example, if the account is “Cash,” the explanation would be “the balance of cash on a specific date.”

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...