Question

In a general journal entry, in an office, if we send a bill to a client and it is not paid, what two accounts are affected? would it be accounts receivable as a credit and fees earned as a debit? or would it be the opposite?

Answer 1

$\huge\bold{\textbf{\textsf{{\color{cyan}{Answer}}}}}$

∴ Journal Entries for Invoice Processing

All transactions require a general journal entry.

If a customer bought $1,000 worth of goods with an invoice, the initial journal entry would be a debit to Accounts Receivable for $1,000 and a credit to Revenues for $1,000.