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Accounts Receivable when you sell goods on credit (TRUE or FALSE)?

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Question added by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed
Date Posted: 2014/07/08
Jerry Easow Thomas
by Jerry Easow Thomas , General Accountant , Masar Medical

True and it shown as asset on Balance Sheet. 

Deleted user
by Deleted user

True...and Journal Entry will be 

Receivable a/c dr

to Revenue a/c

Deleted user
by Deleted user

When you sell goods or services to customer on credit, it will liability for the customer & asset for your company, this is called accounts receivable

Jawhar Alsalem
by Jawhar Alsalem , Lecturer/ Trainer, SOCPA's VAT Specialist , General Authority of Zakat & Tax

true

Muhammad  Waqas
by Muhammad Waqas , Manager , Pwc - Pakistan

TRUE, Accounts Receivable when you sell goods on credit.

Kishore Kumar Revelli
by Kishore Kumar Revelli , Manager , Hitachi Consulting Software Services India Pvt Ltd

when goods sold on credit it will be receivables to company

Sabu Joseph
by Sabu Joseph , Audit Clerk , Rakesh Credits Ltd

sell goods on credit 

Joselito De la Torre
by Joselito De la Torre , Senior Finance Officer , Asian Hybrid Seeds Tecnologies, Inc

True

Journal Entry would be

 Dr      Accounts Receivable

 Cr             Sales

Helen Mary Varghese
by Helen Mary Varghese , Accountant , Chi Nail Spa ,EWD Trading

Ans:True

Journal Entry

Accounts Receivable a/c Dr

To Sales

Antony Michael
by Antony Michael , Accounts Payable Team Leader , Innovation group UAE

True , It will shown as asset ( +AR ) in the Balance sheet 

and the Journal will come like 

 

Dr AR ( S Dr )

CR Income ( Product )

 

 

 

 

Ali Mohammed
by Ali Mohammed , Lecturer in Accounting, Finance, Maths and Economics , Admas University College

This is a true statement, Since selling goods on credit means that the customer would pay at a future date Dr Account Receivable, Cr Revenue. Instead of Dr cash, we Dr Account Receivable to show that the money is not yet in the bank but would expect to be on the bank in the future.  

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