Accounts: Debit or Credit Which of the following accounts carries a debit balance (the plus sign is on the left for its T account)? Check All That Apply Allowance for doubtful accounts Goodwill Sales revenue Accumulated depreciation Gain on disposal of asset Depreciation Which of the following correctly describes the depreciation process? Multiple Choice The journal entry to record depreciation debits depreciation expense and credits plant, property and equipment (PP&E). Recording accumulated depreciation will align an asset's net book value to its fair market value. O Each reporting period, total assets decrease and an expense is incurred. O If a company fails to record depreciation expense, the company's net income will be understated and its contra-assets will be overstated. Recording depreciation and testing an asset for impairment will achieve the same net book value for the asset