Cash Receipts From Cash Sales Affects Which Financial Statement Elements
Cash Receipts From Cash Sales Effects On Financial Statements Cash receipts from cash sales affects cash account and sales account. Cash is a Balance Sheet Account and recorded in the balance sheet while sales is an Income Statement Account and recorded in income statement. So, it affects both Income Statement and Balance Sheet. Cash Received From Customer Journal Entry / Cash Receipts From Cash Sales Journal Entry For example, Mr. A is a sole proprietor, received cash of Rs. 5000 from his customer, Mr. B for merchandise sold for cash. What is the journal entry and the effect of cash receipts from cash sales on the accounting equation? The journal entry is recorded in Cash Receipts Journal . The entry to record shown below: ...