Crystal Credit Recently Started Work with Carcrashian Ltd

question 67

Multiple Choice

Crystal Credit recently started work with Carcrashian Ltd.It is her first job and she doesn't have a lot of accounting experience.When recording the sales for the day, she debited sales and credited cash.The entry is

• A)correct.
• B)an error.
• C)an irregularity.
• D)not necessary.

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Definitions:

Credit Sales

Sales made on credit, allowing the buyer to pay the seller at a later date.

Sales Discounts

Reductions in the selling price offered to customers, often as an incentive for early payment or bulk purchases.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of accounts receivable that may not be collectible.

Accounts Receivable

Represents the money that a company is entitled to receive because it has provided customers with goods and/or services.