Credit Entry (Noun)
Meaning
An accounting entry acknowledging income or capital items.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The accountant made a credit entry in the company's general ledger to reflect the payment from the customer.
- After verifying the invoice, the bookkeeper recorded a credit entry to recognize the revenue earned from the sale.
- A credit entry was posted to the asset account to correct the error in the previous month's financial statements.
- When the investor deposited funds into the company, a credit entry was made in the equity account to reflect the increase in capital.
- The credit entry for the dividend declared was made in the retained earnings account to reduce the accumulated profits.