Question

In: Accounting

You are the accountant for ABC Corportation and are asked to record a sale to a...

You are the accountant for ABC Corportation and are asked to record a sale to a customer on 03/31/2019 for $600.00. The customer agrees to pay for the $600, 30 days after the sale.

ABC Corporation follows the accrual basis of accounting to record transaction.

Prepare the journal entry to record this transaction:

A) No entry will be recorded until the customer actually pays in 30 days.

B) Dr. Cash $600 and Cr. Sales $600

C) Dr. Sales $600 and Cr. Cash $600

D) Dr. Accounts Receivable $600 and Cr. Sales $600

Solutions

Expert Solution

Answer is D

ABC Corporation sold goods of $600.00 and customer agreed to pay after 30 days.

On accrual basis of accounting, transactions are recorded when they occurred.

Journal entry to record sale is
Debit Accounts Receivable $600
Credit Sales $600

ekkarill92 answered 1 year ago
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