Determine the terms of recording sales of merchandise, Accounting Basics

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Determine the terms of Recording sales of merchandise

The SALES ACCOUNT is a temporary account with a normal credit balance. It's ONLY used to record sale of merchandise on account.

In a General Journal, Sales is credited; Cash is debited.

CREDIT SALES-Accounts Receivable, controlling account, and individual account is debited.

SALES JOURNAL- used only to record credit sales of merchandise.

 


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