B sold goods to A on credit for $2 000. What is the correct accounting entry to record this transaction in B's books? Ignore GST and cost of sales.

Question

Quizplus · Accepted Answer

The correct accounting entry to record this transaction in B's books is to debit accounts receivable $2,000 and credit sales $2,000. This is because B has made a sale on credit to A, and the amount owed by A is recorded as an accounts receivable on B's books. The credit entry is to record the sale made by B to A. Option A is incorrect because there is no bank involved in this transaction. Option C is incorrect as it incorrectly debits sales instead of accounts receivable. Option D is incorrect as it involves cost of sales, which is not relevant in this transaction.

B Sold Goods to a on Credit for $2 000