Credit sales are recorded by crediting Accounts Receivable.

Credit Sales

Sales in which revenue is recognized at the point of sale but payment is deferred.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered but not yet paid for.

Comprehend the procedures for recording and handling accounts receivable transactions, encompassing factoring, transactions made on credit, and the deployment of promissory notes.

Verified Answer

Final Answer :

False

Explanation :

Credit sales are recorded by debiting Accounts Receivable and crediting Sales Revenue, as it increases the amount owed by customers to the business.

Learning Objectives

Comprehend the procedures for recording and handling accounts receivable transactions, encompassing factoring, transactions made on credit, and the deployment of promissory notes.