If debits do not equal credits in a journal entry, QuickBooks will not allow the transaction to be recorded. The software prompts the user to ensure that the total debits match the total credits before saving the entry.
When entering a journal entry, if the debits do not equal the credits, QuickBooks will not allow you to record the transaction. Accounting principles require that debits and credits in a journal entry must be equal to maintain the balance in the accounting equation. QuickBooks software is designed to adhere to this important accounting principle to ensure accuracy in financial reporting.
Upon trying to save an unbalanced entry, QuickBooks typically shows an error message indicating the debits and credits do not match. It is then necessary for the user to correct the journal entry so that the total amount of debits equals the total amount of credits before the transaction can be successfully recorded.
Therefore, the correct answer to the question, 'When entering a journal entry, what happens if the debits don't equal the credits?' is: 2) QuickBooks will not allow you to record the transaction.