JAMB - Accounts Principles Of Accounts (2023 - No. 59)

When the goods are sold on credit to a buyer, the account receivable account will be
debit and credit
contra entry
debited
credited

Explanation

When the goods are sold on credit to a buyer, the account receivable account debits, increasing the company's assets as the amount is receivable from the third party. The corresponding credit will be in the sales account, increasing the company's revenue.

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