ACCA Applied Knowledge · Financial Accounting · Receivables and payables
Which one of the following items would be entered on the CREDIT side of a sales ledger control account?
Cash received from credit customers is credited to the sales ledger control account because it reduces the amount owed by receivables. Credit sales increase receivables and are debited, while write-offs and returns also reduce receivables and are credited.
- ACredit sales invoiced to customersCorrect
- BCash received from credit customers
- CIrrecoverable debts written off
- DSales returns from customers
Explanation
The sales ledger control account is debited with credit sales invoiced and credited with reductions in receivables. Credit sales are a debit entry, so that option is wrong. Cash received, irrecoverable debts written off and sales returns are all credits.
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