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Explain the Accounting for Sales.

Answers

Sales are realized after selling goods that were initially bought or purchased by a business with the purpose of resale. Sales generate revenue for a particular business and can be sub-divided into either Cash Sales or Credit Sales.

- Accounting Treatment for Cash Sales
Debit : Cash/ Bank Account
Credit : Sales Account

- Accounting Treatment for Cash Sales
Debit : Debtors Account/ Accounts receivable Account
Credit : Sales Account

Kavungya answered the question on August 17, 2021 at 07:38

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Next: Describe the Debit and Credit Entries.

Previous: The following transactions relate to Kencom Enterprises. You are required to complete the double entry in the relevant accounts for the month of May, 2013.

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