(a) The transfer of merchandise.
(b) The rendering of services.
(c) The use of something of value.
Examples—
(a) We sell to John Doe two tons of coal at $7.50 per ton. We debit his account with the amount.
(b) We render services to Thos. Ryan for which he is to pay us a stated fee. We debit his account with the amount of the fee.
(c) We are to pay rent for the use of our offices. Our landlord debits us with the amount.
3. Credit. The term credit designates those items in an account representing value which we have received or which has been transferred to us. Credits are always placed on the right side (or in the right-hand column) of an account. Credits to persons are of the following classes:
(a) The receipt of merchandise or money.
(b) The rendering of services.
(c) The use of something of value.
Examples—
(a) John Doe pays us $10.00 on account. We credit his account with the amount.
(b) Our attorney makes a charge for legal services. We credit his account with the amount.