Sold merchandise on account would be recorded with
A) a debit to an asset account.
B) a debit to a liability account.
C) a debit to Capital.
D) None of these are correct.

Question

Quizplus · Accepted Answer

When merchandise is sold on account, it means that the customer is purchasing the goods on credit and will pay for them later. This creates an accounts receivable, which is an asset account. Therefore, the transaction would be recorded with a debit to an asset account.

Sold Merchandise on Account Would Be Recorded with