Lesson: Source Documents
• Outgoing Sales Invoice (Net 30): We billed a client. Debit Accounts Receivable, Credit Sales/Service Revenue.
• Vendor Bill / Invoice: A supplier billed us on terms. Debit Supplies/Expense, Credit Accounts Payable.
• Check Stub / Disbursement: We paid cash out. Credit Cash; Debit the expense, asset, or liability settled.
• Bank Debit Memo: Bank subtracted a fee directly. Debit Bank Fee Expense, Credit Cash.