When a credit sale is recorded on an invoice, QuickBooks records:
A)An increase to Sales and a decrease to Accounts Receivable
B)An increase to Sales and an increase to Accounts Payable
C)An increase to Sales and an increase to Accounts Receivable
D)A decrease to Sales and a decrease to Accounts Payable

Question

Quizplus · Accepted Answer

When a credit sale is recorded on an invoice, it means that a sale has been made on credit and the customer owes the business money. Therefore, there is an increase in Sales (revenue) and an increase in Accounts Receivable (asset). Option A is correct in terms of the increase to Sales and the decrease in Accounts Receivable, but it doesn't make sense for a credit sale. Option B and D are both incorrect.

When a Credit Sale Is Recorded on an Invoice, QuickBooks