Your state has recently decided to install an RFID system for its toll roads. The current plan is to sell non-refundable transponders for $20 and allow users to deposit up to $1,000 in their accounts. To assist the IT personnel, the system’s planners want to develop a list of possible accounting transactions and system responses. Using your skills from earlier accounting classes, what debit and credit entries would you make for each of the following activities? (Feel free to develop your own accounts for this problem.)
a. A user buys a new transponder for $20.
b. ... View full description