Credit Sales
What Are Credit Sales?
Credit sales are those sales a business makes now but customers pay for later.
![cs1](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs1.jpg)
How it Works?
A business may sell goods and services on credit during the month.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs2.jpg)
This means the business allows customers time to pay for the goods or services.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs3.jpg)
You need to record the sale in the customer account.
![cs16](https://seeaccountingnow.online/wp-content/uploads/2021/06/cs16.jpg)
To record a credit sale, you credit the sales account
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs5.jpg)
This shows a value of goods or services came from sales.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs6.jpg)
Next, you debit the customer’s account.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs7.jpg)
This shows the goods or services went to that particular customer.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs8.jpg)
Later on, customers will make payments.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs9.jpg)
To record the payment, you credit the customer’s account.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs10.jpg)
This shows money came from the customer.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs11.jpg)
After this, you debit the checking account.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs12.jpg)
This shows the money was deposited in the bank.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cs13.jpg)
© R.J. Hickman 2020