A good way to check your understanding of a concept is to try explaining it to someone else. Imagine that your best friend asked you to explain debits and credits. Use your own words to explain debits and credits to your friend, including why it is important to understand them. In addition, create a specific example to help your friend understand the explanation of debits and credits. Your example must describe a transaction that will debit one of the accounts that make up owner’s equity and credit an asset account. Explain the impacts on those accounts.
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