Your company provides a good to a customer and the customer pays you $150 in cash. To record this...

Question:

Your company provides a good to a customer and the customer pays you $150 in cash. To record this transaction you would Debit how much and credit how much?

Sales Revenue:

Sales Revenue is the income received by the company from selling products or goods. It is the amount realized after the manufactured good has been sold. Sales Revenue is being reported as the top liner of the Income Statement and it is being reduced by the Sales Returns and Allowances claimed by the customers. In order to achieve a higher profit, sales revenue must be higher.

Answer and Explanation:

Dr. Cash 150

Cr. Sales Revenue 150

It will be recorded as debit to cash to increase the amount of cash since we have received cash and credit to sales revenue to increase the sales revenue since it is additional revenue during the period.


Learn more about this topic:

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How to Calculate Sales Revenue: Definition & Formula

from Financial Accounting: Help and Review

Chapter 5 / Lesson 27
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