Increase Revenue Debit Or Credit

Increase Revenue Debit Or Credit

Increase Revenue Debit Or Credit

oboloo’s Glossary

Increase Revenue Debit or Credit is an accounting term used to indicate an increase in revenue or income. This debit or credit reflects the net income of a business for a given period, and it is recorded as part of the Owner’s Equity/Accounts Receivable account. Essentially, when a business has an increase in revenue from sales, services, and other sources, this increase must be recorded as an increase in the owner’s equity account and would be marked as a debit. On the other hand, when there is a decrease in revenue (such as refunds, sales returns, etc.), this decrease is represented by a credit in the accounts receivable column. By properly tracking increases and decreases in revenue, you can more accurately measure your company’s overall performance.