 Hello, in this lecture we're going to define invoice. According to fundamental accounting principles, while 22nd edition, the definition of invoice is itemized record of goods prepared by the vendor that lists the customer's name, items sold, sales price, and terms of sale. When we think about the invoice, we're thinking about that document that's going to list out the sale, the sales terms. Let's take a look at an example. This is an example of an invoice typically we're going to have the date of the invoice. We're going to have an invoice number, which will generally be pre numbered so that they will be in order. We're going to have the name of the customer that we are selling to. We might have the date of the customer as well. We might be issuing this invoice and mailing the invoice. We typically then have a list of the goods or services. In this case, we have the services listed out, the rate, the amounts, and then the total amount that is due from the customer for this invoice. When we think about the invoice, we can think about the journal entry related to the invoice. In terms of a service company, that would be generally a debit to accounts receivable and a credit to revenue. If we think about a company that sells inventory, actual physical goods, then we still have that same debit to accounts receivable credit to sales or revenue type account, which is often called sales. Then we're also going to have a debit to cost of goods sold and a credit to the inventory. Note that we will not have the dollar amount for the debit to cost of goods sold and the credit to inventory on the invoice. But if we're in a perpetual inventory system at the time the invoice is created, that is often also the time that we would record the decrease in the inventory and the related cost of goods sold.