Credit Sales

What Are Credit Sales?

Credit sales are those sales a business makes now but customers pay for later.

How it Works?

A business may sell goods and services on credit during the month.

This means the business allows customers time to pay for the goods or services.

You need to record the sale in the customer account.

​To record a credit sale, you credit the sales account

This shows a value of goods or services came from sales. 

Next, you debit the customer’s account.

This shows the goods or services went to that particular customer.

Later on, customers will make payments. 

To record the payment, you credit the customer’s account.

This shows money came from the customer. 

​After this, you debit the checking account. 

This shows the money was deposited in the bank. 

© R.J. Hickman 2020