Credit Sales
Credit sales occurs when goods sold are not paid immediately. This is the normal practice in most businesses. After goods have been delivered to customer, the seller will send an invoice to the customer to indicate the goods sold and the amount owed to the seller.
This invoice will be the source document in recording transaction into sales journal. At the end, the record in the sales journal will be posted to the sales ledger. The double-entry that occurs during the posting are:
- Debit Customer's Account (in Sales Ledger)
- Credit Sales Account (in General Ledger)
