ACCA Applied Knowledge · Financial Accounting · Sales and purchases
Which one of the following transactions is recorded by debiting the sales ledger control account?
Credit sales invoiced to a customer are debited to the sales ledger control account because they increase the amount customers owe. Cash received, sales returns and write-offs of irrecoverable debts all reduce receivables, so they are credited to the control account.
- ACash received from a credit customer
- BA sales return from a credit customer
- CCredit sales invoiced to a customerCorrect
- DIrrecoverable debt written off
Explanation
The sales ledger control account is debited with increases in receivables, such as credit sales invoiced. Cash received, sales returns and irrecoverable debts written off all reduce receivables and are credited. The sales return option is wrong because a return reduces the amount owed.
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