 up this is what i learned in my debits and credit accounting course it goes up let's say by six hundred and then the other side is going to go to income i'll just make up an income account income and will say it's going to go to income other primary income boom save it and close it now it probably won't even let me record this because quick books is going to say hey wait a sec you don't even have a customer here i can't let you record it because if you do your sub ledgers going to be off for accounts receivable so it's trying to help us out by not even let us record it see it says when you use accounts receivable you must use a customer name so we're going to be like okay maybe i'll just put a name in here and so we'll just say let's say this is costs the mirror number one and i'll add a name and then i can save it and close it and say ha quick books there we have it so if i go back on over here so now if i if i run this then i can go into my accounts receivable and there's my transaction but it looks like a journal entry instead of an invoice you might say that's not too bad but i'm going to say there's that and the other side goes into the to the profit and loss uh... reportless range change all one oh one two four tap twelve three one two four tab run into refreshing there's the six hundred also in there as uh... journal entry by go to the first half because they forced me to put a name in it the sub ledgers should be okay so if i go to the tab to the right right-click it double duplicated so i can open up the the ar form and go to the reports close the bookie hamburgie that is and will say we're going to go to the customer balance detail so now we can see there's our customer everything else has an invoice this one has a journal entry so again it's kind of funny looking there but it still ties out because quick books forced us to put a name so i could put it into the sub ledger it's at the five eight eight one fifty two which ties out to the balance sheet five eight eight one fifty two let's go to the first tab now look at it internally we go to the sales side of things and i go to my customers for example customer number one and so so there we have it here but there's no little button that can say i see the journal at you but i don't see a button saying i can match a payment to it right because the next thing that's gonna happen is they're gonna pay us that money hopefully and normally if you have that you'd make a payment thing here and you apply it out now this one it's still letting you apply it out so that's actually nice that you still have the capacity uh... to apply it out here to the payment but you can see where the where the issues come in when you still when you don't use the forms right if i did this again and i said i got paid with a payment form for example and they paid me and i said well i'm not going to enter payment form i'm going to enter journal entry and say now i got the money which went into the checking account cash uh... i would say checking checking account boom and it was for six hundred and the other size going out of accounts receivable accounts receivable then i can have to put the name in here customer number one so it lets me record it and then i save and close that one so now you've got these now i've got this kind of two journal entries but they're not really linked together in here right that's going to so that's kind of messy and if you do that over time it's going to get to be it's going to get to be messy if i look at my sub ledger report up top then i'm gonna s i'm going to run it and so now it didn't cancel each other out here i can see that it went in and out but i can't really cancel them out because i want those to disappear i want them to go away now you might be able to still to fix it you might be able to make a payment form uh... and tie those two things out just out of curiosity uh... let's check it out so now you have these two journal entries that you could tie out and fix it you see the problem that i'm pointing at here you want to use the forms because those are used for internal bookkeeping purposes and you want to be able to use your accounting knowledge that will help you to be able to understand what is happening behind the scenes when these forms are entered so you want to see what's happening behind the scenes with regards to the debits and credits to create the financials if you can or at least know them in increase and decrease format and then be able to see why the form is useful from an internal perspective one because it's good for data input and to because the forms will be linked together so you could track the information uh... internally in the centers the customer center the vendor center and the employee center never remember the the other main place that you'll use the journal entries are adjusting entries at the end of the period you might not do on the bookkeeping side of things because you might work with an accounting firm that's at least doing the taxes and they might be doing like adjusting entries at the end of the period or they might have to make adjustments to create the financial statements in accordance to either the accrual method possibly or to attack spaces in order to to at least to the taxes or financial statements so then that you have to the question is how do you make that process as smooth as possible do you give them the access they can do the journal entry or do you or do they give you the information and you enter the journal entries and so on and so we'll touch on that a little bit more as we work through the the longer practice problem and uh... will actually have a section on or section or course on uh... adjusting entries if you're interested in that but if you're on the bookkeepers side of things what you need to have an understanding of this both sides need to know what the other side is doing so so that you can you can do what you need to do well and then they can do what they need to do well and we have a a good a good divide between the splitting of the duties so we'll talk more about that in future presentations