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What is the journal entry to record a credit sale to accounts receivable?

When a company sells merchandise on credit to a customer, the debit is to accounts receivable and the credit is to revenue. Remember, a debit to accounts receivable increases the account, which is an asset on a balance sheet.

Then, when the customer pays cash on the receivable, the company would debit cash and credit accounts receivable. A credit to accounts receivable decreases the account.


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