Question

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?

Answer 1

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