What is a Credit Sales Journal Entry and How to Record It?
So, these journal entries are crucial for keeping things above board. If a customer decides to play hide-and-seek with their payments, you might end up with a bad debt. That’s accountant-speak for “money you’re probably never going to see.” To avoid this nightmare, companies lay down the law with clear credit terms on their invoices. A customer purchases $1,000 worth of goods, but the terms allow for a 10% discount if paid within 10...