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Answer true or false: Credit sales are recorded by crediting an Accounts Receivable.

Question:

Answer true or false:

Credit sales are recorded by crediting an Accounts Receivable.

What Are Credit Sales:

A company can either sell its good or services as Cash Sales or Credit Sales. Credit Sales occur when the company allows the customer to not pay at the time of the sale but rather in some point in the future. This is why Credit Sales involves increasing accounts receivable.

Answer and Explanation:

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Accounting for Inventory Sales

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Chapter 6 / Lesson 7
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In order to operate, a business must make sales. In this lesson, we are going to discuss sales of inventory. You will learn the types of sales made, the items that affect sales profit, and the way to record sales in the accounting records.


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