 seven right click and paste it one two three the amount being four fourteen thousand in this case if we debit something fourteen thousand we're also going to credit something fourteen thousand so i'm going to go and sell e twelve negative for the credit for this worksheet twelve thousand no commas or anything push enter and that will format the sell with the brackets and then we just need to know what that account should be here and of course why are people going to pay us twelve thousand i'm sorry fourteen thousand should be negative fourteen thousand so why are people going to pay us fourteen thousand in the future because we did work and earned revenue or income or sales depending on what we do we can call it whatever we want but it's in the revenue section and it's going to be a revenue type account meaning it has a credit balance and revenue accounts generally only go up so how are we going to make it go up we're going to do the same thing to it which of course is another credit so we're going to credit the the revenue account we always credit revenue it only gets credited so we're going to copy that we're going to put that on the bottom in c12 right click and paste it one two three so then let's post this out again we're going to post it to our three locations so let's first post it to our trial balance so we're going to go into the receivable there's a zero in it so we don't want to delete the zero even though it's a zero because i know there's two things in it there's d five plus e nine and i'm going to double click on it go to the end of it and so and then go plus and point to the new receivable fourteen that way we can see the activity in there when we hit enter we goes up by fourteen takes us out of balance by fourteen we can then see the activity that is in there like so and then we're going to post the other side to the revenue once again something's in it e six is in it so we can double click on it go to the end of it and then say plus and point to the revenue the credit of the fourteen what's going to happen it's going to take revenue up by the fourteen put us back in balance so revenue which is the credit minus the debits is now went up to 137 855 all right so now we're going to post the same thing out to the receivable accounts uh this was adams down here so we're going to be down here in the receivables in the debit side i'm going to post this same activity out say adam owes us money so now we can answer the question if we say uh who owes us money how much do people owe us fourteen thousand says on the trial balance who owes us fourteen thousand well we're going to look at the subsidiary ledger and we can see now that adams is the one that owes us the fourteen thousand we also will have that activity by uh date on the gl for all accounts so on the gl we can post that same activity would look like this for the receivable equals the fourteen thousand and enter and now of course the receivables uh in the general ledger ties out to the receivable on the subsidiary ledger ties out to the receivables on the trial balance so all that activity is there and once again note that we would have a receivable account for all the trial balance i mean a general ledger account for all the trial balance accounts as well all right so let's see what the next one is we got deep perform work on account and invoice the client ryan so same activity we did work and we invoice the client so is cash affected no uh we invoice the client we haven't got the cash yet but we did work and therefore people owe us money the account that people owe us money uh is represented by the accounts receivable account it has a debit balance represented by the fact that it has no brackets in the number and we need to make it go up because people owe us more money how do we make it go up we do the same thing to it which in this case would be another debit so i'm going to copy this one going to put that on top again the amount being twenty seven thousand if we debit something we're also going to have to credit something so i'm going to put a negative twenty seven thousand in e-15 and enter that'll put brackets around it then what should that account be uh well why are people going to pay us twenty seven thousand because we did work and therefore earned revenue again so we earned revenue we can see that revenue has a credit balance revenue only goes up and we're going to make it go up again by doing the same thing to it which in this case would be another credit which we already knew because we debited the receivable so there's the credit we're going to credit it to and so let's copy that and put that in the credit side of our journal entry all right so let's post this out and of course the two accounts we're focusing on are having a lot of activity in them but let's post that out again we got fourteen thousand here if we double click on it we can see what is in there so of course this is what's in there and now we're going to go to the end of it after the d eleven and say plus and point to the twenty seven thousand which of course will make the receivable go up again by twenty seven thousand put us out of balance down here and then we're going to post the other side of it to the receivable double clicking on the receivable go to the end of it and plus and then point to the revenue sorry the other side of it is revenue and the revenue of course will go up in the credit direction bringing net income up and putting us back in balance here so there we have that we're going to post this out once again to our subsidiary ledger we can see our question who how much do people owe us forty one thousand well who owes us forty one thousand well then we're going to go to our subsidiary ledger over here and say well adam owes us and then we have ryan who we need to record over here in p nine so p nine we're going to say equals that same twenty seven thousand needs to be recorded there and now we have the twenty twenty seven by ryan and the total adds up to of course the forty one which is on the trial balance we will also have this activity by a date on the general ledger not as useful in this particular type of account which is why we need the extra ledger of the subsidiary ledger by client but the activity for all accounts will be represented in the general ledger by date so we're going to go by date we're going to be in a cell t twelve t twelve equals the same activity so i'm just going to post that same debit bringing this fourteen up in the debit direction because the same thing makes it go up and there we have that let's take a look at the last one here we're going to say receive cash on account from adam's so now adam's going to pay this this fourteen that we build them in the past that's what we expect to happen we we invoice them and then we received a check in the mail that's nice so then we are going to say well is cash affected yes cash is affected we just got the check cash is going to go up cash has a debit balance we make something go up by doing the same thing to it in this case that would be another debit a debit and a debit are the same thing making the debit go up copying that right clicking pasting one two three so that's going to be the fourteen thousand then we're going to credit something of course fourteen thousand represent the credit with a negative for this worksheet fourteen thousand and then we just need to know what account we're going to credit well why did people pay us fourteen thousand because we did work and we did earn revenue but we earned revenue into the past and people already we already recorded that revenue up here now we need to see the fact that we also recorded up here the receivable that represents the fact that people owe us money that now needs to go down because somebody paid us money that has a debit balance in it and how do we make something go down we do the opposite thing to it which in this case would be a credit and we already knew that we're going to credit it because we debited cash there's the credit right there that we will credit it for so what is happening the receivables will go down we're losing one asset but we're gaining a better asset that asset being cash so we're going to copy the receivable we're going to post that underneath in c 18 right click and paste it one two three okay then we're going to post this out so let's post this out we're going to post cash cash has something in it so I'm going to double click on it we're going to go to the end of it and say plus and so I can see what's in there there and I'm going to put this 14 in there as well what's that going to do increase cash put us out of balance so there we have that then we're going to record the receivable so here's the receivable in I six double clicking on I six going to the end of it it's getting kind of long I see that but we could see everything that's in there and we're going to go to the end say plus and then point to that 14000 and then when we hit enter what's going to happen the receivable is going to go down because it has a debit balance it's going to go down and puts us back in balance down here so now we can see the receivable if we have someone asks us if our boss asks us if we're the owner and we're asking who owes us money or how much do people owe us people owe us 27000 well who owes us 27000 and of course we're going to have to look at the subsidiary ledger for that we need to record this same activity for the subs atoms down here is the one who paid us the 14000 so we're going to go into the credit side for atoms and we are in cell and 17 equals and we're going to point to that 14000 over here that will bring the 14 down by 14 to 0 so atoms no longer owes us the money we can see that that all the subsidiary ledger accounts now add up to 27000 just what Ryan owes us that ties out to the trial balance and of course this information would be on the general ledger as well and it would be recorded by date so we need to record that as well in the general ledger for accounts receivable so I'm going to say the same activity equals the 24000 here bringing the 47 down by the 14 to the 27 so the 27 in the GL ties out to the 27 in the subsidiary ledger ties out to the 27 in the trial balance also note that if we look at the GL we can see the the activity being the fact that the same thing makes it go up the opposite thing makes it go down so we see that we have the debit side here are always going to win because it's an asset account and you could think of it kind of a race that we're saying who you know it's the debits against the credits which ones are going to win and how much are they going to win by well we already know the debits are going to win because it's an asset account so therefore the credit makes it go down so the 35 minus the credit makes it go down then we're going to say plus the debit makes it go back up to the 14 then plus the debit makes it go up to 47 and then we say minus the credit makes it go down to 27 other way we can think about it is of course the debits add up to a total of 76000 minus the credits which add up to the 49000 if you subtract those two outs you get the 27000 so that's how the activity will work in the GL that same activity is a little bit more difficult to see in the subsidiary ledger because it is of course broken out in a bit more detail by customer and of course we can see the summary of that same activity in the trial balance by just taking a look at what is being included here so debit making it go up credit making it go down debit making it go up debit making going up credit making it go down