The source document for this transaction is Calculator Tape No.12. (CONCEPT : Objective Evidence) The analysis of this transaction is shown in the T accounts.
The asset account, Cash, is increased by a debit,$295.00.00 The revenue account, Sales, is increased by a credit,$295.00.
The reason that Sales increases by a credit is discussed in the previous chapter. The owner’s capital account has a normal credit balance. Increases in the owner’s capital account are shown as credits. Because recorded as cred-its. A revenue account, therefore, has a normal credit balance.