Question
When the goods are sold on credit, the following
happens?Solution
When the goods are sold on credit, the company does not receive the cash but a promise to be paid by the person buying the goods. These are the debtors or accounts receivables for the company. The journal entry for this particular transaction is: Dr. Debtors/Accounts Receivables                        Cr. Sales/Revenue As such the impact is that the debtors of the company increase. Â
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