A credit sale should always include debits to accounts receivable and cost of goods sold, and credits to ________.
A)sales discounts and allowances
B)sales and inventory
C)sales and sales discounts
D)sales discounts and inventory

Question

Quizplus · Accepted Answer

A credit sale transaction typically involves debiting accounts receivable to record the amount owed by the customer and debiting cost of goods sold to reflect the expense related to the sale. The corresponding credits are to sales, to record the revenue earned from the sale, and to inventory, to decrease the inventory account for the goods that were sold.

A Credit Sale Should Always Include Debits to Accounts Receivable