Debit trade receivables, Credit sales, Credit VAT is the correct double entry to record cash sales made by a business

Name: Debit trade receivables, Credit sales, Credit VAT is the correct double entry to record cash sales made by a business
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The correct double entry for recording cash sales by a business is Debit Cash/Bank, Credit Sales, and Credit VAT (if applicable). Trade receivables would be debited in the case of credit sales, not cash sales.

Debit Trade Receivables, Credit Sales, Credit VAT Is the Correct