Chapter 7

Zion Company sells merchandise on account to BRC, Inc. in the amount of $1,200. The entry to record this sale would include a:

- debit to Accounts Receivable. - credit to Sales.

An accounts receivable ledger:

- is a supplementary record to maintain an account for each customer. - records journal entries that affect accounts receivable.

Simon Co. sold $500 of merchandise on their own store credit cards. The entry to record this sales transaction on the date of the sale would include a debit to:

Accounts Receivable for $500

A BLANK

Receivable

In September, DK Company sells merchandise to Lions Company on credit. In October, Lions Company pays the balance in full. The entry to record the collection of cash by DK Company in October will include a (debit/credit) to Accounts Receivable.

credit