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| Sold Goods on Credit Journal Entry |
When a business sells goods on credit, Then revenue is considered i.e. Sales even if payment is not received immediately.
Journal Entry for Sale on Credit
Accounts Receivable Account Debit
Sales Revenue Account Credit
- The "Accounts Receivable" account is debited because of the amount owed by the customer.
- The "Sales Revenue" account is credited because of the revenue from the sale.
This journal entry reflects the sales revenue and the creation of an accounts receivable, representing the Debtor Amount. When the customer pays the amount which is a sales of that seller. separate journal entries will be made for reduce the accounts receivable and with record cash or bank payments.
