Purchases

How do I record purchases made with my debit card?

When you pay by debit card it’s just like you wrote a check, except there is no check number. Follow the steps to Issue a Check to a Vendor, but use a made up check number, like 777 or 888, for all your debit card transactions. Since there is no actual check to print, click the “Post Check” button to record it.

How do I track credit card purchases and pay my credit card bill?

There are two possible methods for tracking credit card transactions:

1. Credit cards can be treated as negative assets, known as a “contra” assets. There are several advantages to this approach. See: Credit Cards as Contra Assets
2. The other option is to treat credit cards as a liabilities, using journal entries to record purchases. See: Credit Cards as Liabilities