A sale on account results in a debit to cash and a credit to sales.

Name: A sale on account results in a debit to cash and a credit to sales.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

A sale on account means that the customer has bought something but has not yet paid for it. In this case, there is no debit to cash as no cash has been received. Instead, there would be a debit to accounts receivable (the amount owed by the customer) and a credit to sales.

A Sale on Account Results in a Debit to Cash