To increase the balance of a sales account, you would?

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Prepare for the YouScience Accounting 1 Test. Enhance your skills with interactive flashcards, multiple choice questions, and detailed explanations. Get exam-ready efficiently!

Multiple Choice

To increase the balance of a sales account, you would?

Explanation:
Revenue accounts have a normal credit balance, and increases to them are recorded on the credit side. When you make a sale, you increase sales revenue by crediting the Sales account (for example, credit Sales Revenue and debit Cash or Accounts Receivable). Debiting the Sales account would actually decrease its balance, and simply saying “increase” isn’t an entry by itself—the way to increase it is to credit the account. That’s why crediting the sales account is the correct action.

Revenue accounts have a normal credit balance, and increases to them are recorded on the credit side. When you make a sale, you increase sales revenue by crediting the Sales account (for example, credit Sales Revenue and debit Cash or Accounts Receivable). Debiting the Sales account would actually decrease its balance, and simply saying “increase” isn’t an entry by itself—the way to increase it is to credit the account. That’s why crediting the sales account is the correct action.

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