Is sales revenue a debit or a credit?
Understand the Problem
The question is asking whether sales revenue is recorded as a debit or a credit in accounting, which relates to the principles of double-entry bookkeeping.
Answer
Sales revenue is a credit.
Sales revenue is recorded as a credit.
Answer for screen readers
Sales revenue is recorded as a credit.
More Information
Sales revenue is recorded as a credit to reflect the increase in equity resulting from the sale of goods or services. This aligns with accounting principles.
Tips
A common mistake is to confuse the natural balances of different account types. Remember: revenue has a natural credit balance.
Sources
- Does a debit or credit increase revenue? - Universal CPA Review - universalcpareview.com
- What are debits and credits? - Sage Advice US - sage.com
- In bookkeeping, why are revenues credits? | AccountingCoach - accountingcoach.com
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