Ask Question
BusinessBusiness
2 September, 09:29

A company sells goods to a customer who will pay the full amount in 30 days. How should the company record the sale

+5
Answers (1)
  1. 2 September, 11:42
    0
    Credit sales

    Debit receivables

    Explanation:

    This is a sales on account transaction which affect the sales and receivables account.

    When this transaction occurs, the company has definitely made a sale which will lead to an inflow of cash in 30 days time, even though the income is recognized immediately according to the accrual method of accounting

    To record this, the sales account is credited with the value of the goods sold and the account receivable is debited for with the same amount.

    The receivable is a record of payment being owed to the company by its customers.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company sells goods to a customer who will pay the full amount in 30 days. How should the company record the sale ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Goal B, goal C, goal D, and goal E are on a timeline from left to right, in that order. Which goal is to be accomplished first? A. Goal B B. Goal D C. Goal C D. Goal E 2b2t
Answers (1)
Knowledge management is most popular among businesses in
Answers (1)
On January 1, 2017, Grand Haven, Inc., reports net assets of $945,300 although equipment (with a four-year remaining life) having a book value of $510,000 is worth $591,500 and an unrecorded patent is valued at $45,000.
Answers (1)
How much would it cost to cover the entire us with dollar bills?
Answers (1)
6: the cost of a protein bar increased from $2.50 to $2.80. the percent increase in the $2.80 rate was how much?
Answers (1)
New Questions in Business
Javier's employer pays for 43% of his annual health insurance premium. Javier pays the remaining balance by having it deducted from his paychecks in equal amounts twice a month throughout the year. If $157.
Answers (1)
Choose the BEST paraphrase of this sentence: Tashkent, the capital of Uzbekistan, has been an important market and trading place for hundreds of years.
Answers (1)
Economic exposure, a category of foreign exchange risk, is distinct from transaction exposure, which is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within
Answers (1)
According to liquidity preference theory, if there were a surplus of money, then A. the interest rate would be above equilibrium and the quantity of money demanded would be too large for equilibrium. B.
Answers (1)
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,400 units) $ 4,372,000 Cost of goods sold 2,595,000 Gross profit
Answers (1)
Home » Business » A company sells goods to a customer who will pay the full amount in 30 days. How should the company record the sale
Sign Up Forgot Password?