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It’s possible you may have accidentally selected an expense account for the debit or credit entry instead of a revenue or income account to reflect a sale, Mostafa. Let me provide more clarification on this.
In a journal entry, debits increase asset or expense accounts, while credits increase liability, revenue, or equity accounts. When recording sales, you typically credit a revenue account. However, if you debit a revenue account and credit an expense account, the transaction will be recorded as an expense, which may lead to incorrect reporting.
To fix this issue, you’ll need to edit the journal entry to ensure the correct accounts (income/revenue) are debited and credited. Please follow these steps:
After correcting the entry, it will properly reflect as sales income on your Profit and Loss report and other financial statements.
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