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Mostafa-Fares
Level 1

HI QB team can you help me understand why the journal entry is mixed up into the expense when is the amount there in journal entry is for sales

Why the Journal entry shown into expense?
1 Comment 1
EmanE17
QuickBooks Team

HI QB team can you help me understand why the journal entry is mixed up into the expense when is the amount there in journal entry is for sales

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:

 

  1. Click on the Search tab in your home screen and locate the journal entry.
  2. Check the debit and credit accounts:
    • Ensure that the Income/Revenue account is credited.
    • Adjust the debit account accordingly, if needed.


       
  3. Once updated, select Save and Close.

 

After correcting the entry, it will properly reflect as sales income on your Profit and Loss report and other financial statements.

 

If you have any additional questions about QuickBooks or need further assistance, feel free to reach out or leave a comment below. We're here to help!