Mullis Company sold merchandise on account to a customer for $625,terms n/30.The journal entry to record this sale transaction would be:

A) Debit Cash of $625 and credit Sales $625.
B) Debit Cash of $625 and credit Accounts Receivable $625.
C) Debit Accounts Receivable $625 and credit Sales $625.
D) Debit Accounts Receivable $625 and credit Cash $625.
E) Debit Sales $625 and credit Accounts Receivable $625.

The entry should increase the Accounts Receivable account by $625, which is the amount owed by the customer. The entry should also increase the Sales account by $625, which is the revenue earned from the sale. Therefore, the correct entry is to debit Accounts Receivable $625 and credit Sales $625. Option A is incorrect because it debits cash when no cash has been received yet. Option B is incorrect because it incorrectly reduces the Accounts Receivable balance. Option D is incorrect because it credits cash when no cash has been received yet. Option E is incorrect because it incorrectly reduces the Accounts Receivable balance.