If you record a cash sale, which account is debited?

If you record a cash sale, which account is debited?

• A. Accounts payable
• B. Revenue
• C. Cash
• D. Inventory

Answer: (C)

In double-entry bookkeeping, increases to asset accounts are recorded with a debit. A cash sale brings cash into the business, so the cash account increases and is debited. The sale’s revenue is recorded as a credit to Revenue, not a debit. Accounts payable is a liability and would not be debited in this transaction, and inventory is typically credited to reflect the reduction in stock (with cost of goods sold debited if you’re tracking cost). So, the cash account is the one that gets debited.

In double-entry bookkeeping, increases to asset accounts are recorded with a debit. A cash sale brings cash into the business, so the cash account increases and is debited. The sale’s revenue is recorded as a credit to Revenue, not a debit. Accounts payable is a liability and would not be debited in this transaction, and inventory is typically credited to reflect the reduction in stock (with cost of goods sold debited if you’re tracking cost). So, the cash account is the one that gets debited.