Credit Sales Are Recorded As What

Credit Sales are recorded in the Sales Day Book as a part of Total Sales and then transferred to Income Statement Or Profit And Loss Account. These are the results of goods sold on credit or on account or services rendered to customers on account. So, credit sales are the parts of Total Sales that include both Cash Sales And Credit Sales.

Credit Sales Accounting Journal Entry

Example, Mr. A sold goods worth Rs. 3000 to Mr. B on Credit, then following Entry is passed in the Sales Day Book of Mr. A’s Business:

                                     (Accounts Receivable) Mr. B   3000

                                              Sales a/c   3000

(Goods Sold On Account)