Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 32 - No. 47)

If a company sells goods on credit, what is the journal entry?

Debit Cash, Credit Sales Revenue

Debit Accounts Receivable, Credit Sales Revenue

Debit Sales Revenue, Credit Accounts Receivable

Debit Cash, Credit Accounts Receivable

Explanation

The correct entry is a debit to Accounts Receivable and a credit to Sales Revenue. This reflects an increase in the amount owed to the company by customers and revenue.

Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 32 - No. 47)

Explanation

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