Two introductory accounting students were arguing about how to record a transaction involving an exchange of cash

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Two introductory accounting students were arguing about how to record a transaction involving an exchange of cash for land. Laura stated that the transaction should have a debit to Land and a credit to Cash; Clark argued that the reverse (debit to Cash and credit to Land) represented the appropriate treatment.


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Which student was correct? Defend your position.

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Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

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