QuickBooks Pro 2006 for Macintosh: Visual QuickStart Guide

6. Working with Transactions

Working with Transactions

Most of the transactions you enter into QuickBooks are created using relatively intuitive forms that you fill in when you sell goods and services, pay bills, and write checks. Using these forms creates standard double-entry accounting entries in ledgers maintained by QuickBooks.

For example, when you use an Invoice form to invoice a customer for merchandise he purchased, QuickBooks automatically debits a cost of goods sold account and credits an inventory account for the value of the items sold. At the same time, it debits an accounts receivable account and credits an income account for the item purchase price. And if the customer was billed for sales tax, QuickBooks debits an accounts receivable ...