What are Credit sales?
Credit sales are sales made by a business to a customer which do not require immediate payment.
The customer has an account with the business, and will be required to pay in accordance with the credit terms agreed with the business, for example they may be required to pay in 30 days time. The balance outstanding on the customers account is an asset of the business called accounts receivable, and represents money owed by the customer.
Credit sales are sometimes referred to as on account sales.
For further information on credit sales see our sales tutorials.
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