A. debtors account, credit sales account
B. creditors account, credit sales account
C. sales account, credit debtors account
D. sales account, credit creditors account

Correct Answer: Option A

A. debtors account, credit sales account

Explanation

Accounting and journal entry for credit sales include 2 accounts, debtor and sales. In case of a journal entry for cash sales, cash account and sales account are used. The person who owes the money is called a “debtor” and the amount owed is a current asset for the company. Since the goods were sold on credit, the debtor account will be debited (increase in the amount of money being owed to the business), and the sales account will be credited.

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