Journal entries are divided into debits and credits. Sales revenue is earned when your customer takes possession of the goods. The sale is realized when you receive payment.

For example, if a company has sales of $1 million and expenses of $750,000, the closing journal entries are to debit sales and credit income summary by $1 million each; credit expenses and debit ...

Revenue represents sales from goods and services, while sales represent money coming from the sale of goods only. ... both debit and credit columns in a journal entry in accounting balance out.

A closing entry is a journal entry made at the end of the accounting period, moving data from temporary to permanent accounts and resetting temporary balances to zero.