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What is the effect on its Cash account when a company sells merchandise, but allows the customer to pay in 30 days?

Accounting Auditing Cost Accounting Budgeting Financial Accounting
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Question added by Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC
Date Posted: 2015/08/17
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Hossam Mohamed
by Hossam Mohamed , Senior Accountant , Allied Arab Assurance Brokerage

No effect on cash account.....

Syed Muntazir
by Syed Muntazir , Accountant , AL BARAKAH DATES FACTORY LLC

As i mentioned earlier that at the point of sale there is no effect on cash A/C, it will only be effected after settlement is made. the treatment will be

 

Receivables A/C      Dr

Sales A/C                   Cr

 

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