The left side of an asset account is the credit side because asset accounts are on the left side of the accounting equation.

A drawing account is decreased by debits and increased by credits.

Increases in expense accounts are recorded as debits because they decrease the owner’s capital account.

The normal balance side of an accounts receivable account is a credit.

Accounts payable accounts are increased with a debit.

Advertising Expense is increased with a debit.

Cash is increased with a credit.

Prepaid Insurance is decreased with a credit.

To summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the owner’s capital account.

Increases to accounts are recorded on the debit side.

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