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
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