Question

As customers with balances are entered in the QuickBooks desktop set up window and recorded and the customer center, a journal entry is recorded in the journal report to record a debit to _ and a credit to _?

Answer 1

In QuickBooks, the automatic journal entry for entering customer balances records a debit to Accounts Receivable and a credit to Opening Balance Equity.

Step-by-step explanation:

When customers with balances are entered into QuickBooks during the setup process, and these balances are recorded in the Customer Center, a journal entry is automatically generated in the journal report. This entry includes a debit to Accounts Receivable and a credit to Opening Balance Equity. The Accounts Receivable account tracks the amounts owed by customers who have purchased goods or services on credit. In contrast, the Opening Balance Equity is used as a temporary account to offset the total assets being added to the company's books, establishing an opening balance for newly entered balances.