Sales Transactions in Accounting

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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:

Cash Sales

(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:

Credit Sale