oboloo Glossary

Sales Credit Or Debit

oboloo Glossary

Sales Credit Or Debit

Sales Credit Or Debit is an accounting recording method that accurately tracks the amounts of money being exchanged in sales transactions. It serves as a record for a company to refer back to when deciding whether or not to pay a customer for their services. This term keeps track of an account receivable or payable by keeping a record of entries and withdrawals from the account, thereby allowing businesses to track their profits and losses. Sales Credits are recorded when a business receives payment for goods or services, while Debits are tallied when a company pays out for goods or services received. By using this system, businesses can ensure that their finances remain accurate and up-to-date.