Types / Kinds of Sales

There are 4 types of Sales according to Business Transactions which are given below:

Cash Sales

When goods sold or services rendered for cash, then it is called Cash Sales.

Credit Sales

Goods sold or services rendered on credit or on account is called Credit Sales.

Advance Payment Sales

When the customers make advance payments to company before the company actually delivers the goods or renders the services to them.

After Sales Payment

When the company delivers the goods or renders the services to customer but still the payment is not received from the customer. It is the reversal of advance payment sales as here the company actually delivered the goods or rendered the services but the customer pays after receiving the goods or serving the services.