Accounting for IGCSE & O level - Accounting Procedures (Section 16 - No. 24)
When recording a sale of goods on credit, which accounting entry is made?
Debit the customer's account, credit sales.
Credit the customer's account, debit sales.
Debit cash, credit sales.
Debit the sales returns account, credit the customer's account.
Explanation
A sale on credit increases the amount owed by the customer. So, debiting their account increases the balance, and crediting the sales represents the revenue earned.
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