This useful chart will help you make Journal Entries. Look up your account type and then find either increase or decrease next to your account type. Then look up the column to see if you should debit the account or credit it.
|Cost of Goods Sold||Increases||Decreases|
Cost of Good Sold – is an expense that relates directly to the business completing a sale. If you did not incur this expense the sale would not be completed.
Expenses – are expenses that do not relate to a completion of a sale. IE: Utility Bills