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Sales on credit are immediately counted as cash receipts. True or False

User Maynull
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2 Answers

3 votes
the answer is false because they are not emmediate


User Andy Clement
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3 votes

Answer:

false

Explanation:

Sales in any business can be done in two ways. FIrst method is cash sales where cash is paid and goods are acquired.

Second method is credit sale where without receiving cash, from reputed customers on credit sales are done.

Sales on credit cannot be counted as cash receipts they are credited to sales and debited to concerned debtor account.

When cash is received from debtor, then cash is debited and debtor is credited.

User AngryJS
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