Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 35 - No. 4)
What is the correct method for recording an increase in trade receivables?
Debit trade receivables, credit sales
Credit trade receivables, debit sales
Debit sales, credit trade receivables
Credit sales, debit cash
Explanation
When goods are sold on credit, trade receivables increase. This is a debit to trade receivables and a credit to sales.
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