debits and credits are easier for you checking account than for A/R & A/P
Then you have to think about what account you re posting to, positive credit to A/P means deeper in debt, no ?
Accounting ppl ?
A/R is what you're OWED (take in)
A/P is what YOU OWE (pay out)
Debits are what you take OUT
Credits are what you PUT IN
Credits/Debits are entered and DISBURSED to the appropriate G/L account (AP or A/R) Credit TO A/R, Debit FROM A/P. Even MORE FUN when you're runnng multiple bank accounts in one system.
Rick
who did his first year as a sub-s corp, and is now as confused as ever.