The account accumulated amortization - equipment is a credit account and it has 1,200 in it on the work sheet for the month ended march 31, 2003. I have to make an adjustment to it, and the adjustment is: amortization for march is 100. Do I credit or debit the 100 to the accumulated amortization account?
To determine whether to credit or debit the 100 to the accumulated amortization account, we first need to understand the normal balance of the account.
In accounting, the normal balance of an account represents the side (debit or credit) where increases are recorded. The normal balance for an accumulated amortization account is typically a credit balance.
Given that the accumulated amortization - equipment account has a credit balance of 1,200 on the worksheet, we can assume that it has been credited for previous transactions.
To make the adjustment for amortization for March, which is 100, we need to follow this general rule: to increase a credit account, we will debit it.
Therefore, in this case, you would need to debit the accumulated amortization - equipment account by 100 to reflect the additional amortization for March. This adjustment will increase the overall credit balance in the account.