My Learning Cart

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

Practice Questions

Q1
What is the journal entry for the sale of goods on credit?
  1. Debit Cash, Credit Sales Revenue
  2. Debit Accounts Receivable, Credit Sales Revenue
  3. Debit Sales Revenue, Credit Accounts Receivable
  4. Debit Sales Revenue, Credit Cash

Questions & Step-by-Step Solutions

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.
No concepts available.
School
School
College
College
Degree
Degree
Competitve
Competitve
Skills
Skills
Soulshift Feedback ×

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?

Not likely Very likely