What is the journal entry for the sale of goods on credit?

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Question: What is the journal entry for the sale of goods on credit?

Options:

Correct Answer: Debit Accounts Receivable, Credit Sales Revenue

Solution:

The correct entry is to debit Accounts Receivable to recognize the amount owed and credit Sales Revenue to record the sale.

What is the journal entry for the sale of goods on credit?

What is the journal entry for the sale of goods on credit?

Step 1: Identify the sale of goods on credit. This means the customer will pay later, not immediately.
Step 2: Determine the amount of the sale. This is how much the customer owes for the goods sold.
Step 3: Create a journal entry. You will make two entries: one for the amount owed and one for the sale.
Step 4: Debit Accounts Receivable. This shows that the business expects to receive money from the customer in the future.
Step 5: Credit Sales Revenue. This shows that the business has made a sale and earned revenue.

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