Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 43 - No. 44)
What is the effect of a business selling goods on credit?
Debit Cash, Credit Sales Revenue
Debit Sales Revenue, Credit Accounts Receivable
Debit Accounts Receivable, Credit Sales Revenue
Debit Accounts Payable, Credit Sales Revenue
Explanation
A sale on credit increases the Accounts Receivable (debit) and also increases the Sales Revenue (credit).
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