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.

BACC012 Online Quiz- Week 5 | LA005

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

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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?

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