When Thandile and Rebecca allow a customer to buy on credit, which account increases?
A)Debt
B)Inventory
C)Trade and other payables
D)Trade receivables

Question

Quizplus · Accepted Answer

When a customer buys on credit, it means that the business has given them the goods or services without receiving payment immediately. This creates a trade receivables account, which represents the money owed to the business by its customers. Therefore, if Thandile and Rebecca allow a customer to buy on credit, the trade receivables account will increase.

When Thandile and Rebecca Allow a Customer to Buy on Credit