What are credit entries?
Credit entries (Definition)
Credit entries are a specific type of entry that goes into your accounting journal. It is important to understand the role of credit entries in your business as it helps you to keep accurate records for your business. All credit entries are entered as a journal entry into a particular account. The entry will appear on the right side of the account. A credit does two things. It increases certain accounts such as equity, liability, or revenue accounts. For example, when your business sells goods or services of $250, and you receive cash for the purchase, the transaction is then recorded as an increase (credit) in the revenue account. A credit decreases other accounts such as asset or expense accounts. For example, if you were to purchase a new printer for your business you would record it as a credit by crediting the expense account.