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Description: 8.When a product is sold on credit, which account should be debited for the seller?A.cashB.InventoryC.A/PD.A/R

Business

Accounting

When a product is sold on credit, which account should be debited for the seller? A.cash B.Inventory C.A/P D.A/R

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 1MC: Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory...

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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8.When a product is sold on credit, which account should be debited for the seller?

A.cash

B.Inventory

C.A/P

D.A/R

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