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When recording a journal entry for a sales account, ensure that the sales are strictly done on credit terms.
You would credit the customer account and debit bad debt.
debit cashcredit accounts receivable
[Debit] cash / bank [credit] accounts receivable
[Debit] cash / bank [credit] accounts receivable
What needs to happen when recording a Journal Entry for a sale on account
When recording a journal entry for a sales account, ensure that the sales are strictly done on credit terms.
You would credit the customer account and debit bad debt.
debit cashcredit accounts receivable
[Debit] cash / bank [credit] accounts receivable
Debit cash / bankCredit accounts receivable
[Debit] cash / bank [credit] accounts receivable
(Debit) Cash xxxx (Credit) Accounts receivable xxxx
goods physically should be transferred to customer as well as all liabilities related to goods as well before recording transaction.
To record a journal entry for sales, the possession of goods or services is transferred from business to client or end user.
goods physically should be transferred to customer as well as all liabilities related to goods as well before recording transaction.
Debit bad debtsCredit accounts receivable