Emin Radwan In: Category - Journal EntriesWhat is the journal entry for sold goods on credit?credit salesgoods sold on creditjournal entrysold goods on credit ShareFacebook1 AnswerVotedRecent Palak 2020-08-26T18:24:39+05:30Added an answer on August 26, 2020 at 6:24 pm This answer was edited. In the modern business world, sales are made on credit as well as cash basis. Even though there’s a high risk of bad debts in selling goods on a credit basis, the companies prefer the same to develop customer loyalty and meet the cut-throat competition.‘Sold goods on credit’ is nothing but the sale of goods on a credit basis i.e. providing goods to the customer with an expectation of receiving the payment in the future. This amount owed by the debtor leads to an increase in the accounts receivables of the company and is a current asset.Journal entry for sold goods on creditThe respective debtor account is debited while the sales account is credited.1. According to the golden rules of accounting:Debtors a/cDebitDebit the receiverTo Sales a/cCreditCredit all incomes and gains(being goods sold on credit)2. According to the modern rules of accounting:Debtors a/cDebitDebit the increase in assetTo Sales a/cCreditCredit the increase in revenue(being goods sold on credit)ExampleXYZ Ltd. sold goods amounting to 50,000 to Mr. A on credit. The journal entry in the books of XYZ Ltd. is as follows:Mr. A’s a/cDebit50,000To Sales a/cCredit50,000(being goods sold on credit)Hope this helps.0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login or register to add a new answer.