When a retailer sells merchandise on account,the general entry for the sale's price would be:

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When a retailer sells merchandise on account, it means that the customer has agreed to pay for the purchase at a later date. In this case, the retailer records the sale as Accounts Receivable, which is an asset account representing the amount owed to the retailer by the customer for the merchandise sold. On the other hand, Sales is a revenue account that represents the total amount of sales made by the retailer. Therefore, the general entry for the sale's price would be to debit Accounts Receivable and credit Sales. This entry increases the retailer's asset (Accounts Receivable) and revenue (Sales) accounts.

When a Retailer Sells Merchandise on Account,the General Entry for the Sale's