koroitamanapoasa04
koroitamanapoasa04 koroitamanapoasa04
  • 23-07-2021
  • Business
contestada

what account is a affected when goods are sold on credit
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Respuesta :

topeadeniran2 topeadeniran2
  • 30-07-2021

Answer: account receivable account

Explanation:

The accounts receivable account simply refers to an asset account on the balance sheet which represents the money that is due to a business in the short term. It should be noted that the accounts receivables are created when goods are bought on credit by the buyer.

In such case, when the goods are sold on credit to the buyer, this will lead to a debit on the account receivable account and this will bring about an increase to the company's assets.

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