Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 43 - No. 34)
A company sells goods on credit. Which of the following entries reflects this transaction?
Debit Cash, Credit Sales Revenue.
Debit Accounts Receivable, Credit Sales Revenue.
Debit Cost of Goods Sold, Credit Inventory.
Debit Cash, Credit Accounts Receivable.
Explanation
When selling goods on credit, Accounts Receivable increases (debit) and Sales Revenue increases (credit).
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