Answer:
In the case of a cash sale, the entry is:
[debit] Cash. Cash is increased, since the customer pays in cash at the point of sale
.[debit] Cost of goods sold. ..
. [credit] Revenue. ...
[credit]. ...
[credit] Sales tax liability.
Explanation:
In the case of cash sales, the “cash account” is debited, whereas “sales account” is credited with the equal amount.
