For example I could make a transaction like this:
Order Placed for Yummy Meatball Platter
$120 debited to Cash Account
$120 credit to Food Payable(?) Account
Then all outgoing payments (in the form of food) would be in the Food Payable account...
Or, I make a unique Account for each customer then:
$120 credit to the Smith Wedding Account.
You're combining some transactions here. Try this:
This is when you account for the cost of what went into your sales. I made up the $40.00 amount.
Bought Ingrediments Debit Credit
Order placed for Yummy Meatball Platter
This is how you record your sale. Something goes up, your cash or accounts receivable or what the credit card company owes you. And your sales go up to reflect the fact that you sold something.
Cash (or A/R or Credit Card Receivable) $120.00
Catering Sales $120.00
Hope this helps.