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Sales Accounting - Rules for Recording Sales Transactions

6 May, 2015 - 17:39
  1. When goods are sold and payment is made in cash, debit Cash and credit Sales.
  2. When goods are sold on credit, debit Accounts Receivable and credit Sales.
  3. When goods are sold through the use of a credit card, there often will be a service fee. In such circumstances, debit Cash and Credit Card Collection Expense (for the fee) and credit Accounts Receivable.