What is the difference between cash and credit sales?
when you purchase something with cash that's what you have available right then and there. with credit you don't have to pay out of pocket right away. you are having someone else hold an accounting for the amount you have spent and send you a bill that is best paid off upon receiving it, to avoid interest.
Sales to customers who use bank credit cards such as MasterCard and Visa are generally treated as...a. sales when the credit card company remits the cash?
A debit on sales, while crediting cash means a cash refund to a customer. A sales transaction For a service provider, the journal entry for a cash sales transaction has a debit on cash, and a credit on sales. Assuming a sales price of $100: cash 100 (debit) sales 100 (credit) A refund If for whatever reason the customer requests (and receives) a (partial) refund, sales is reduced. The journal entry of a $30 refund…
There are two kinds of sales, one is cash sales and other once is credit sales. Whenever sales are made on credit it will create accounts receivable which will be shown in balance sheet as current asset. So it means that accounts receivables are created due to credit sales so it is already included in sales So; Total Sales = Cash Sales + Credit Sales (Accounts Receivable)
Cash sales are on average greater than credit sales as businesses give the customer incentive, such as a discount, to pay cash. This is because the business has physically received the money, which they may now use; to invest or buy inventory with. Additionally, credit sales have a degree of unreliability; the customer may not have any prospects and may never pay the money back, which is sometimes the reality.
I'm not exactly sure of the question, but I'm going to assume you mean what is the difference in the balances of sales and account receivable. First lets look at sales, sales (aka revenue) is what a company makes from providing a good or service. Say you sale $1,000 in watches and the buyer wants to put $500 of that on account (credit) for you that is an account receivable. The difference ($500) is recorded…