multiple select question select all that apply the journal entry to record $5.6 million in sales on account…

multiple select question select all that apply the journal entry to record $5.6 million in sales on account includes a ______. (select all that apply.) credit to accounts payable for $5.6 million credit to sales revenue of $5.6 million debit to cash of $5.6 million debit to accounts receivable of $5.6 million debit to allowance for doubtful accounts of $5.6 million

multiple select question select all that apply the journal entry to record $5.6 million in sales on account includes a ______. (select all that apply.) credit to accounts payable for $5.6 million credit to sales revenue of $5.6 million debit to cash of $5.6 million debit to accounts receivable of $5.6 million debit to allowance for doubtful accounts of $5.6 million

Answer

Explanation:

Step1: Understand sales on account

When there are sales on account, the customer will pay in the future. So, accounts receivable (an asset) increases and sales revenue (a revenue account) increases.

Step2: Apply debit - credit rules

Assets increase with a debit. So, accounts receivable is debited for the amount of sales on account. Revenues increase with a credit. So, sales revenue is credited for the amount of sales.

Answer:

B. credit to Sales Revenue of $5.6 million D. debit to Accounts Receivable of $5.6 million