Payable account debit or credit is an accounting term for an account that records the amounts an entity owes to other entities. A payable debit indicates a company has paid out money, while a payable credit indicates income received from another entity. Both entries are recorded in the same account and can be used to track regular expenses and payments. Whether the entry is a debit or credit depends on the payee’s point of view. From a business perspective, debits decrease cash, increase accounts payable, and reduce retained earnings; credits increase cash, decrease accounts payable, and increase retained earnings. It’s essential to keep track of these entries so that your finances remain in order.