The sale of merchandise to a customer partly for cash and partly on account would require which of the following entries?
A)Dr.Accounts receivable, Dr.Cash, Cr.Sales revenue
B)Dr.Cash, Dr.Accounts payable, Cr.Sales revenue
C)Dr.Cash, Cr.Sales revenue
D)Dr.Accounts payable, Dr.Accounts receivable, Cr.Sales revenue

Question

Quizplus · Accepted Answer

The sale of merchandise partly for cash and partly on account means that the customer is paying a portion of the purchase price in cash and owes the remainder on account. As a result, we need to record both the increase in Accounts Receivable and the increase in Cash, as well as the Revenue earned from the sale. Therefore, we debit Accounts Receivable and Cash, and credit Sales Revenue.

The Sale of Merchandise to a Customer Partly for Cash