Ed runs an auto repair business out of the garage attached to his personal residence. How should he account for each of the following items?

a. Cash received from repair services, $28,000

b. Interest paid on his home mortgage, $7,300

c. Automotive wrench set purchased at a cost of $1,200

d. Electricity bills, $3,600. (Ed does not have separate electricity service to the garage.)

e. Checks received from customers that were returned by his bank (bed debts), $1,600

f. Telephone bill for phone in the garage, $420. (Ed has a separately listed phone in his house.)

g. Advertising in the local newspaper, $800

h. Interest paid on home furniture loan, $600