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    Intermediate Accounting - Sale on Credit

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    What accounts are affected when a company records a sale on credit? How is the balance sheet affected when a company records a sale on credit? How is the income statement affected when a company records a sale on credit?

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    https://brainmass.com/business/accounting/intermediate-accounting-sale-on-credit-117431

    Solution Preview

    "What accounts are affected when a company records a sale on credit? "
    - Account receivables.

    "How is the balance sheet affected when a company records a sale on credit?"
    - On a public company's balance sheet, accounts receivable is often recorded as an asset because this represents a legal obligation for the customer to remit cash for its short-term debts.
    Total Current Assets in the balance sheet increases ...

    Solution Summary

    Affected accounts, the balance sheet and income statement changes are explained when a company records a sale on credit.

    $2.19

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