If a company debits Cash and credits Sales Revenue, it is recording the.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:If a company debits Cash and credits Sales Revenue, it is recording the.
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sale of goods to a customer on account
collection of cash from customers in advance for goods to be delivered later
sale of goods to a customer for cash
collection of cash for goods that were sold on account
Expert Solution
Step 1 Debit and credit of nominal Accounts
Real accounts are those assets and liabbilties whose balance is carried forward from one accounting period to the other
We know that for real accounts we have debit what comes in and credit what goes out .
Here Cash is a real account
Nominal account are incomes, revenues, losses and gains. We know that for nominal accounts we debit all expenses and and credit all revenues( Income)
Here sales revenue is a nominal account
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