Question

Please explain how it is that Revenue can be recorded as - and thus operate as - a net debit and yet still be reported as a credit:

Answer 1

Revenue accounts come from a company's income statement. A company's revenue usually includes income from both cash and credit sales.Debits are decreases in revenue accounts. Credits are increases in revenue accounts. Increases in revenue or income are recorded as a credit on the left side of the ledger. Decreases in revenue or income accounts are recorded as debits on the right side of the ledger.You should post sales revenue as credits in the accounts and sales return as debits in the accounts.