Questions: BE3.4 (LO 2), K For each of the following accounts, indicate the effect of a debit or a credit on the account and the normal balance. a. Accounts Payable. d. Accounts Receivable. b. Advertising Expense. e. Retained Earnings. c. Service Revenue. f. Dividends.

To address the question, we need to understand the effect of debits and credits on different types of accounts and identify their normal balances. Here's a breakdown for each account listed:

a. Accounts Payable

• Effect of Debit: Decreases the account balance.
• Effect of Credit: Increases the account balance.
• Normal Balance: Credit. Accounts Payable is a liability account, and liabilities have a normal credit balance.

b. Advertising Expense

• Effect of Debit: Increases the account balance.
• Effect of Credit: Decreases the account balance.
• Normal Balance: Debit. Expense accounts have a normal debit balance because they decrease equity.

c. Service Revenue

• Effect of Debit: Decreases the account balance.
• Effect of Credit: Increases the account balance.
• Normal Balance: Credit. Revenue accounts have a normal credit balance because they increase equity.

d. Accounts Receivable

• Effect of Debit: Increases the account balance.
• Effect of Credit: Decreases the account balance.
• Normal Balance: Debit. Accounts Receivable is an asset account, and assets have a normal debit balance.

e. Retained Earnings

• Effect of Debit: Decreases the account balance.
• Effect of Credit: Increases the account balance.
• Normal Balance: Credit. Retained Earnings is an equity account, and equity accounts have a normal credit balance.

f. Dividends

• Effect of Debit: Increases the account balance.
• Effect of Credit: Decreases the account balance.
• Normal Balance: Debit. Dividends are a distribution of earnings and reduce equity, so they have a normal debit balance.

In summary, the normal balances and effects of debits and credits for each account are as follows:

• Accounts Payable: Normal balance is credit; debit decreases, credit increases.
• Advertising Expense: Normal balance is debit; debit increases, credit decreases.
• Service Revenue: Normal balance is credit; debit decreases, credit increases.
• Accounts Receivable: Normal balance is debit; debit increases, credit decreases.
• Retained Earnings: Normal balance is credit; debit decreases, credit increases.
• Dividends: Normal balance is debit; debit increases, credit decreases.