The following transactions relate to Gordon’s business for the month of July 2011

The following transactions relate to Gordon’s business for the month of July 2011:1. Bought goods on credit from Watson.2. Sold some goods for cash.3. Sold some goods on credit to Moon.4. Sent a cheque for half the amount owing to Watson.5. Watson grants Gordon a cash discount.6. Moon settles most of his account in cash.7. Gordon allows Moon a cash discount that covers the small amount owed by Moon.8. Gordon purchases some goods for cash.Required:State which account in Gordon’s books of accounts should be debited and which account should be credited for each transaction.

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