What is the ledger entry of credit sale

Question

Accepted Answer

The ledger entry for a credit sale involves recording the increase in accounts receivable and the corresponding increase in sales revenue.

Credit sale is a transaction where goods or services are sold on credit, meaning the payment is expected at a later date.
To record a credit sale, the accounts receivable account is debited to increase the amount owed by the customer.
Simultaneously, the sales revenue account is credited to reflect the increase in revenue generated from the sale.
The entry would typically include the date, customer name, invoice number, and the amount of the sale.
For example, if a company sells goods worth $1,000 on credit to a customer, the ledger entry would be: Debit Accounts Receivable $1,000 and Credit Sales Revenue $1,000.

Accepted Answer

Account receivable A/c

To sale A/C

Accepted Answer

Account receivable A/c

To sales a/c

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