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16 October, 23:12

Before closing the office for the day, Lisa took a phone call from a corporate customer who wanted to make a reservation for three nights at Wildwood Inn. The total cost came to $473.00. The customer asked Lisa to charge the total amount to the company's account. Which T-Account or T-Accounts listed below correctly show how a sale on account should be recorded?

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  1. 16 October, 23:31
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    A sale on account would be recorded with the following T-Accounts:

    Sales Revenue - increases, so the amount is credited.

    Dr. Cr.

    $473.00

    Accounts Receivable - is an asset, and increases, so the amount is debited.

    Dr. Cr.

    $473.00
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