Revenues are the assets earned by a company's operations and business activities. In other words, revenues include the cash or receivables received by a company for the sale of its goods or services.
The revenue account is an equity account with a credit balance. This means that a credit in the revenue T-account increases the account balance. As shown in the expanded accounting equation, revenues increase equity. Unlike other accounts, revenue accounts are rarely debited because revenues or income are usually only generated. Income is rarely taken away from a company.
The revenue account is only debited if goods are returned and sales are refunded. In this case, the recorded sale must be reversed because the original sale is canceled.