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

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Question ajoutée par Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed
Date de publication: 2014/07/08
Jerry Easow Thomas
par Jerry Easow Thomas , General Accountant , Masar Medical

True and it shown as asset on Balance Sheet. 

Utilisateur supprimé
par Utilisateur supprimé

True...and Journal Entry will be 

Receivable a/c dr

to Revenue a/c

Utilisateur supprimé
par Utilisateur supprimé

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

true

Muhammad  Waqas
par Muhammad Waqas , Manager , Pwc - Pakistan

TRUE, Accounts Receivable when you sell goods on credit.

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

when goods sold on credit it will be receivables to company

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

sell goods on credit 

Joselito De la Torre
par 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
par Helen Mary Varghese , Accountant , Chi Nail Spa ,EWD Trading

Ans:True

Journal Entry

Accounts Receivable a/c Dr

To Sales

Antony Michael
par 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
par 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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