The Sales Ledger Records Transactions with Individual Credit Customers

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The Answer is The transactions listed below are recorded as follows in each individual customer's sales ledger account:

a. Cash refunds are recorded as Debits. This is because when a cash refund is given to a customer, it reduces the amount the customer owes to the business, hence decreasing the business's accounts receivable.

b. Cash received is recorded as Credits. When a business receives cash from a customer, it reduces the amount the customer owes, hence decreasing the accounts receivable.

c. Irrecoverable debts are recorded as Credits. When a debt is deemed irrecoverable, it means the business has given up on trying to collect the debt from the customer. This reduces the accounts receivable.

d. Sales invoices are recorded as Debits. When a sales invoice is issued, it increases the amount a customer owes to the business, hence increasing the accounts receivable.

The Sales Ledger Records Transactions with Individual Credit Customers

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The Sales Ledger Records Transactions with Individual Credit Customers

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Correct Answer:Answered by ExamLex AIShow Answer

Correct Answer:
Answered by ExamLex AI