14.1.1 Recording credit sales of goods and services Flashcards
1
Q
What is the journal entry when a trading business sells goods on credit?
A
Dr Trade Receivables (increase asset)
Cr Sales Revenue (increase income)
2
Q
What is the journal entry when goods are returned by the debtor?
A
Dr Sales returns (increase contra-income)
Cr Trade receivables (decrease asset)
3
Q
What is the journal entry when a service-providing business provides services on credit?
A
Dr Trade Receivables (increase asset)
Cr Service fee revenue (increase income)
