3.8 The following transactions relate to Gordon’s business for the month of July 2007:

1 Bought goods on credit from Watson.

2 Sold some goods for cash.

3 Sold some goods on credit to Moon.

4 Sent a cheque for half the amount owing to Watson.

5 Watson grants Gordon a cash discount.

6 Moon settles most of his account in cash.

7 Gordon allows Moon a cash discount that covers the small amount owed by Moon.

8 Gordon purchases some goods for cash.

Required:

State which accounts in Gordon’s books of accounts should be debited and which account should be credited for each transaction.