Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 15 - No. 34)

If a company makes a sale on credit, what accounts are impacted?
Debit sales, credit bank.
Debit bank, credit sales.
Debit accounts receivable, credit sales.
Debit sales, credit accounts receivable.

Explanation

A credit sale increases accounts receivable (an asset) and the sales revenue.

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