Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 46 - No. 31)
What will happen if goods are sold on credit?
A debit is made to Cash account and a credit to Sales Revenue.
A debit is made to the Accounts Receivable and a credit to Sales Revenue.
A debit is made to Cash and a credit to Accounts Payable.
A debit is made to the Inventory and a credit to Sales Revenue.
Explanation
For a credit sale, Accounts Receivable is debited and Sales Revenue is credited.
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