A journal entry to record the sale of inventory on account will include a
A) debit to Inventory.
B) debit to Accounts Receivable.
C) debit to Sales Revenue.
D) credit to Cost of Goods Sold.

Question

Quizplus · Accepted Answer

A sale on account increases Accounts Receivable (an asset), which is debited. Inventory sold is recorded by crediting Inventory and debiting Cost of Goods Sold, not by debiting Inventory or Sales Revenue.

A Journal Entry to Record the Sale of Inventory on Account