Mullis Company sold merchandise on account to a customer for $625, terms n/30. The journal entry to record this sale transaction would be:

The journal entry to record this sale transaction would be:

-Debit accounts receivable (845)
-credit sales (845)

When we sold a product on account, we still haven't receive any form of payment for the buyer, so we record it as an account receivable on the credit.
But, this transaction is still considered as sales, so we record an increase of sales , which always written on the side of the credit.

stephcourt1977 stephcourt1977 · Answer 2 · 2021-04-09T22:41:14+02:00

stephcourt1977 stephcourt1977

09-04-2021

Answer:

Debit Accounts Receivable $625 and credit Sales $625.

Explanation:

Since the account has not been paid yet, the amount must be realized as a balance due in Accounts Receivable. When the funds are collected, the AR account will be credited and Cash will be debited.

The Sale must also be realized on the books to account for the merchandise sold.

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