LO 6.4 Which of the following accounts are used when recording the sales entry of a sale on credit?Choose one answer from the options below.A. merchandise inventory, cashB. accounts receivable, merchandise inventoryC. accounts receivable, salesD. sales, cost of goods sold
Question
LO 6.4 Which of the following accounts are used when recording the sales entry of a sale on credit?Choose one answer from the options below.A. merchandise inventory, cashB. accounts receivable, merchandise inventoryC. accounts receivable, salesD. sales, cost of goods sold
Solution
The correct answer is C. Accounts Receivable, Sales. When a sale is made on credit, the company does not receive cash immediately. Instead, the customer promises to pay at a later date. This promise to pay is recorded as an increase in Accounts Receivable, an asset account. The revenue from the sale is recorded in the Sales account. Therefore, both Accounts Receivable and Sales are used when recording the sales entry of a sale on credit.
Similar Questions
LO 6.3 Which of the following accounts are used when recording a purchase?Choose one answer from the options below.A. cash, merchandise inventoryB. accounts payable, merchandise inventoryC. A or BD. cash, accounts payable
LO 6.7 Which of the following accounts are used when recording a purchase using a periodic inventory system?Choose one answer from the options below.A. cash, purchasesB. accounts payable, salesC. accounts payable, accounts receivableD. cash, merchandise inventory
When a seller records a return of goods purchased on credit, the account that is credited with the selling price of the goods returned is: Group of answer choices Sales Revenue. Sales Returns and Allowances. Inventory. Accounts Receivable.
Goods sold on cash and carry basis returned by a customer is treated in the account by A. Debiting Inventory and Crediting Cash B. Debiting Sales and Crediting Cash C. Debiting Sales and Crediting Accounts Payable D. Debiting Inventory and Crediting Bank E. Debiting Sales and Crediting Accounts Receivable
Under a perpetual inventory system, which of the following accounts would be used to record purchases? Group of answer choices Sales Purchases Cost of Sales Inventory
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