Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 25 - No. 5)

When a business sells goods on credit, what journal entry should be made?

Debit Cash, Credit Sales Revenue

Debit Accounts Receivable, Credit Sales Revenue

Debit Sales Revenue, Credit Accounts Receivable

Debit Cash, Credit Accounts Receivable

Selling goods on credit increases Accounts Receivable (asset) and increases Sales Revenue (revenue).