Exe Ltd sells goods on credit to Wy Ltd for £3000. Which of the following accounting entries correctly records this transaction?

the answer is second choice b. Debit Wy Ltd, credit sales £3000

This a case of Credit Sales with a promise to pay the sales consideration on a future date by WY Ltd. Hence he becomes Debtors or Account Receivable. WY Ltd account is to be Debited as he is a debtor and Sales account is to be credited as per the basic principles of accounting With3000 Pounds.

Option B) Debit Wy Ltd and Credit Sale

B

B

Option b.

b.
Debit Wy Ltd, credit sales £3000.

Answer is B for sure. This transaction will result in an increase of accounts receivable Wy Ltd. (debit) and an increase in sales (credit).