Asked by Giavanna Battaglia on May 16, 2024
Verified
Credit sales are recorded by crediting Accounts Receivable.
Credit Sales
Sales in which revenue is recognized at the point of sale but payment is deferred.
Accounts Receivable
Amounts owed to a company by customers for goods or services that have been delivered but not yet paid for.
- Comprehend the procedures for recording and handling accounts receivable transactions, encompassing factoring, transactions made on credit, and the deployment of promissory notes.
Verified Answer
AS
Armaan SinghMay 17, 2024
Final Answer :
False
Explanation :
Credit sales are recorded by debiting Accounts Receivable and crediting Sales Revenue, as it increases the amount owed by customers to the business.
Learning Objectives
- Comprehend the procedures for recording and handling accounts receivable transactions, encompassing factoring, transactions made on credit, and the deployment of promissory notes.
Related questions
A Company Factored $30,000 of Its Accounts Receivable and Was ...
If a Customer Owes Interest on Accounts Receivable,Interest Receivable Is ...
Jervis Sells $75,000 of Its Accounts Receivable to Northern Bank ...
On June 1, Mike's Motorcycle Shop Accepted a 90-Day, 10 ...
During 2010, Dawson's First Year of Operations, the Following Transactions \( ...