Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 24 - No. 33)
What would be the journal entry for a business receiving cash from a customer for goods sold on account?
Debit Cash, Credit Sales Revenue
Debit Accounts Receivable, Credit Sales Revenue
Debit Cash, Credit Accounts Receivable
Debit Sales Revenue, Credit Cash
Explanation
The business receives cash (increasing assets) and the amount owed by the customer is reduced (decreasing assets).
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