Crystal Credit recently started work with Carcrashian Ltd.It is her first job and she doesn't have a lot of accounting experience.When recording the sales for the day, she debited sales and credited cash.The entry is
A)correct.
B)an error.
C)an irregularity.
D)not necessary.

Question

Quizplus · Accepted Answer

In accounting, recording sales typically involves crediting the sales account and debiting the cash or accounts receivable account, depending on whether the sale was made in cash or on credit. Crystal's entry, which debited sales and credited cash, is incorrect because it reverses the usual accounting treatment for sales transactions.

Crystal Credit Recently Started Work with Carcrashian Ltd