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How to record a Credit Sale? - YouTube
Channel: The Accounting Student
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do you know what a credit cell is and
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how to record it I'm Thomas Harwood and
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welcome to the accounting student where
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we create free and short videos so that
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you can learn about accounts in today's
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video is it gonna how to record a credit
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sale first of all a cell can be
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described as the goods or services sold
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to a customer there are two main types
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of cells they are cash sales and credit
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sales in this video we are going to look
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at credit sales because this type is
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becoming more popular with the
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developing global economy a credit sale
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is where goods or services were sold to
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a customer and the business and customer
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agree for the payment to be paid at a
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future date when there is a credit sale
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of stock or inventory we enter the
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credit entry in the South T accounts and
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the corresponding debit entry will be in
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the customers t account which can be
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identified as a debtor of the business
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let's now look at how sales of stock on
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credit is treated in their accounts on
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the 17th of July 2016 goods were sold
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for 110 pounds on credit to be or rights
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as well the future payment date was
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agreed first we will look at the
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recording of the sale in the sales
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account for this transaction we would
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enter details on the credit side of this
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he accounts the transaction took place
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on the 17th of July 2016 which can be
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shown as 17 / 7 / 16 then we will notice
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B or right in the detail column because
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that is the name of the other account
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that has been affected during the
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transaction and lastly 110 is entered in
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the pound column now we will look at
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recording of the cell in the customers
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accounts for this transaction we would
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enter the details on a debit side of the
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t-accounts the transaction took place on
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the same date which can be shown as 17 /
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7 / 16 then we will notice sales in the
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detail column because that is the name
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of the other account that
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has been affected during the transaction
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and lastly 110 is entered in the pound
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column bets assumed that the future
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payment date agreed was on the 31st of
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July 2016 and that be all rights made to
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the payment on that date by cheque to
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record this we would first enter the
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details on the credit side of beetle
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rights t accounts because be all right
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ie a debtor owes the business less money
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and this is a decrease in an asset and
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therefore a credit entry the transaction
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took place on the 31st of July 2016
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which can be shown as 31 / 7/16 then we
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will note it as Bank in the detail
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column because that is the name of the
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other account that has been affected
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during the transaction and lastly 110 is
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entered in the pound column been to
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recall to the corresponding entry we
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will enter the details on the debit side
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of the bank t accounts because bo writes
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pay to the business money and this is an
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increase in an asset and therefore a
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debit entry the transaction took place
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on 31st of July 2016 which can be shown
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as 31 / 7/16 then we will note it as be
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alright in the detail column because
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that is the name of the other account
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that has been affected during the
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transaction and finally 110 is entered
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in the pound column so that was
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demonstrating how to recalled a credit
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so if you enjoyed it
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press the like button if you have a
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the accounting student thanks for
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watching we'll see you next time
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