QQuestionAccounting
QuestionAccounting
Tasia is using accrual accounting in QuickBooks and created a customer invoice.
Which account is debited when the invoice is created?
A. Accounts receivable
B. Sales of product income
C. Owner's equity
D. Checking account
E. Miscellaneous income
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Answer
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Step 1Let's solve this accounting problem step by step:
Step 2: Understand Accrual Accounting
In accrual accounting, revenue is recorded when it is earned, regardless of when cash is received. When an invoice is created, two accounting entries are made: - A debit to Accounts Receivable - A credit to Sales of Product Income
Final Answer
Accounts Receivable is debited when the invoice is created in accrual accounting.
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