What is sales transaction, Accounting Basics

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Q. What is sales transaction?

- In a sales transaction the seller transmits the legal ownership (title) of the goods to the buyer.

- An invoice is a document prepared by the seller of merchandise as well as sent to the buyer that contains the details of a sale such as the number of unit price, units sold, total price, terms of sale and manner of shipment.

- Generally sales are for cash or on account when a sale is for cash the debit is to Cash and the credit is to Sales. While a sale is on account the debit is to Accounts Receivable and the credit is to Sales.


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