Question

Earlier in the month, Harrison was informed that one of the firm's partners withdrew $1,300 from the firm, so he recorded a transaction to the owner's drawing account. To close out the $1,300 balance, Harrison must record a debit to the __________ account, and a credit to the __________ account for $1,300.

Answer 1

Answer:

Owner's equity; Owner's draw

Explanation:

Based on the information given in order to close out the amount of $1,300 balance, Harrison must record a debit to the OWNER'S EQUITY account, and a credit to the OWNERS DRAW account for the amount of $1,300 reason been that at the time when the payment was made the owner's draw account would have been debited which is why the amount of $1,300 balance has to be transferred to owner's equity account .