Definition of Sale:
Sales refers to the sale of goods which have been purchased with the intention of selling. Sales just like purchases include both cash and credit sales.
Types, Examples and T-Account of Sale Transactions:
(1) Cash Sale:
Cash sale involves immediate receipt of cash at the time of sale.
Cash Sale Transaction:
(2) Credit Sale:
Credit sale arises when payment for sale of goods is not made at the time of sale and is deferred to a future date.
Credit Sale Transaction: