Creating and Sending Invoices: Understanding Account Balances
Understanding Account Entries After Creating and Sending Invoices
When running a business, sending invoices to customers is a common practice to request payment for goods or services provided. However, there might be confusion regarding the impact of creating and sending invoices on the customer's account balance. Let's clarify this process and understand how account entries are affected.
t/f: after you create and send an invoice to your customer, there will be a credit entry in your customer's account balance.
Final answer:
After creating and sending an invoice to a customer, there is a debit entry in the customer's account balance.
Explanation:
The statement in the question is false. After you create and send an invoice to your customer, there will be a debit entry in your customer's account balance, not a credit entry.
This is because when you create an invoice, you are essentially requesting payment from your customer for the goods or services provided. This increases the amount owed by the customer, resulting in a debit in their account.
On the other hand, when the customer pays the invoice, there will be a credit entry in their account, as the amount owed decreases.
What is the impact on a customer's account balance after sending an invoice? After sending an invoice, the customer's account balance will show a debit entry, representing the amount owed by the customer.