Debit revenue accounts with credit balances, credit income summary. Credit revenue accounts with debit balances, debit income summary. Credit expense accounts with debit balances, debit income summary. Debit expense accounts with credit balances, credit income summary. Establishing a pety cash account: dr pety cash (asset) cr cash. End of period adjustment: dr various expenses cr cash. Speciic ideniicaion: used to value items that cannot be interchanged easily. Fifo: oldest inventory is sold irst and e/b is valued at most recent price. If payment is made in ime for discount: Gross proit operaing expense = net income. Where cogs = beginning inventory + cogp ending inventory. Bv = book value (hc accumulated depreciaion) N = # of months asset was available for use. Straight line and units of producion do not depreciate beyond useful life. Diminishing balance cannot depreciate beyond esimated residual value. Once an asset is fully depreciated, bv should equal rv. Straight line depreciaion: (hc-rv) x 1/a x n/12.