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Mostafa-Fares
Level 1

WHY THE SALES ANOUNT IS UNDER JOURNAL ENTR?

WHY THE SALES ANOUNT IS UNDER JOURNAL ENTRY?
1 Comment 1
JoelES
QuickBooks Team

WHY THE SALES ANOUNT IS UNDER JOURNAL ENTR?

We can examine several factors that explain why the sales amount appears under a journal entry, Mostafa.

 

Journal entries are fundamental to the concept of double-entry accounting. If sales revenue accounts are used, it clarifies why the amount shows up in the journal entry report. For further information, you can also refer to the sample breakdown below.

 

For a credit sale:

  • Debit: Accounts Receivable (as the customer owes money)
  • Credit: Sales Revenue (to record the earned income)

For a cash sale:

  • Debit: Cash (as money is received)
  • Credit: Sales Revenue (to reflect income earned)

 

You can check out this article for guidance on recording journal entries in QBO: Create journal entries in QuickBooks Online.

 

Feel free to reach out if you need more help with QuickBooks.