Purrfect Pets sells a $1,500 aquarium to a customer on account. This would be recorded by an entry that includes a:

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The sale was made on account, meaning the customer has not paid cash. Therefore, the company would record a debit to Accounts Receivable to recognize the amount owed by the customer. A debit to Sales would also be required to record the revenue earned from the sale, but this is not the best choice in this scenario. A debit to Cost of Goods Sold would only be appropriate if the item sold was previously bought by the company for resale.

Purrfect Pets Sells a $1,500 Aquarium to a Customer on Account