Question

Knowledge Check 01 Messing Company has their own credit card and makes a credit sale on February 1 to one of its customers for $5,000. Prepare the February 1 journal entry for Messing Company by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answer 1

Answer:

February 1,  

DR Accounts receivable 5,000  

CR Sales  5,000

(To record Credit Sale)

Sales to be credited as sales are credited when they increase. Accounts Receivables are credited when they increase as well as they are Assets.