Final Answer:
When a customer invoice is generated, the GL entries involve debiting the customer subledger account and crediting the revenue account.
Step-by-step explanation:
In the accounting process, the generation of a customer invoice triggers several general ledger (GL) entries to accurately record the financial transactions. When a customer invoice is created, the customer subledger account is debited. This reflects the increase in the amount owed by the customer, as the invoice represents a claim on future payment.
Simultaneously, the revenue account is credited. This credit entry acknowledges the recognition of revenue associated with the goods or services provided to the customer. The revenue account represents the income earned by the business from its primary operating activities.
It's important to note that the accounts receivable reconciliation account is not directly involved in the initial creation of a customer invoice. Instead, this account is typically affected when payments are received, leading to a decrease in the accounts receivable balance.
In summary, the GL entries for a customer invoice involve a debit to the customer subledger account, reflecting the increase in the customer's outstanding balance, and a credit to the revenue account, recognizing the income generated from the sale of goods or services. These entries align with the principles of double-entry accounting, ensuring that the financial records accurately reflect the economic transactions of the business.