No all revenues has credit balance as default balance while all expenses has debit balance as default normal balance.
All expenses has debit balance as normal default balance while all income has credit balance as normal default balance.
All revenues has credit balances as default balance like wise rent revenue also has credit balance as default balance instead of debit balance because all expenses has debit as default balance.
All incomes has credit balance as a default normal balance so earned income also has credit balance as default normal balance.
Depreciation is expense and like all other expense it also has debit balance as default balance and all revenues has credit balance as default balance.
Bonds payable is liability for business which is refundable in future and like all liabilities which have credit balance as default balance bonds payable also has credit balance as default balance.
Sales is a revenue account and all revenues has credit balance as default balance so sales also has credit as default balance while cash or accounts receivable will be debited against it.
Building is an asset for business which is used for generating revenue for more than one fiscal year and like all assets which has debit balance as normal default balance building also has debit balance.
Sales is a revenue account and all revenues has credit balance as default balance so sales also has credit as default balance while cash or accounts receivable will be debited against it.
Purchases account has debit balance as default balance while purchases returns has credit balance as default balance because it is use to reduce the purchases account so debit decreases the purchase discounts while credit increases the purchase discount account.
Revenues has credit balance as default balance and as services revenue is also a revenue account it means it should have credit balance as well and not a debit balance.
Confused. If the loan is paid off - hence 0 balance...then it can't said to be in default...there is nothing due. (and you are the only one that can be in default, not the lender). If it was charged or written off, then it is in default and still due. The letter is not saying there is a 0 balance.