Question

Why are debit cards called debit cards? Is the accounting term used correctly? What would the accounting entry be to record an ATM withdrawal on the bank’s books? What would the accounting entry be on your books if you use your company debit to purchase office supplies? Does it make sense?

Answer 1

The checking account balances of a bank's customers are liabilities for the bank so whenever we are using debit card for payment there will be a reduction in the cardholder's checking account balance at the time. The amount will be debited means bank's liability account such as Customer Checking Accounts will be reduced.
The accounting term is correct when there is reduction in concerned liability that liability account will be debited.Similarly when there is reduction in the cardholder's checking account balance (liability ) so it will be debited.
Journal entry	Debit	credit
Customer's Checking Account	-
Cash		-
Journal entry	Debit	credit
Office Supplies	-
Cash		-
Yes, Its make sense ,It is company's money deposited in the bank which is linked to debit card , can be used by the company for purchasing and payment.So Expenses or assets will be debited and cash will be credited.