The business makes a sale on account. The debit is Account Receivables and credit is Sales Revenue .

Question

BlackTom AI · Accepted Answer

In this transaction, the business makes a sale on account, which means it is extending credit and expects to collect cash later. 
Option 1: Account Receivables. Debiting Accounts Receivable increases the asset account that records amounts owed by customers, reflecting the new amount the customer now owes the business due to the sale on credit. 
Option 2: Sales Revenue. Crediting Sales Revenue increases the revenue account, recognizing the income earned from the sale. Revenue accounts are increased with credits, aligning with standard double-entry accounting rules. 
Since a sale on account affects both an asset (accounts receivable) and revenue (sales revenue), both selections are correct as the appropriate debit and credit for this transaction. 
There are no other options provided to evaluate, so no additional corrections are needed.

The business makes a sale on account. The debit is Account Receivables and credit is Sales Revenue .多重下拉选择题

类似问题

Company A provided $300 service to a customer today. The customer paid $100 cash today and will pay $200 in 10 days. Which entry is correct for the company A?

Company A provided $300 service to a customer today. The customer paid $100 cash today and will pay $200 in 10 days. Which entry is correct for the company A?

Select the journal entry to record the purchase.

Purchased $22,000 of cleaning equipment; paid $10,000 cash, with the remainder on account due within 30 days.

Borrowed $40,000 cash from the bank and signed a note payable agreeing to repay it in one year plus 10% interest.

Paid $17,200 cash for cleaning supplies.

Collected $9,200 cash from customers on their accounts for previously billed services.

$36,000 cash was invested in the company to begin the business in exchange for common stock.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单