A trading card business sold a rare card for $8,000 in cash. Which entries correctly record the sale?

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Multiple Choice

A trading card business sold a rare card for $8,000 in cash. Which entries correctly record the sale?

Explanation:
When you record a cash sale, you’re reflecting two effects: you gain cash (an asset) and you earn revenue (which increases equity). In double-entry accounting, assets increase with a debit, and revenues increase with a credit. So receiving $8,000 in cash is a debit to cash, and recognizing the sale as revenue is a credit to the sales (revenue) account. This is why the correct entry is to debit the cash account for 8,000 and credit the sales (revenue) account for 8,000. The other options would either decrease cash or improperly affect revenue, which doesn’t align with how assets and revenues are increased in double-entry records.

When you record a cash sale, you’re reflecting two effects: you gain cash (an asset) and you earn revenue (which increases equity). In double-entry accounting, assets increase with a debit, and revenues increase with a credit. So receiving $8,000 in cash is a debit to cash, and recognizing the sale as revenue is a credit to the sales (revenue) account. This is why the correct entry is to debit the cash account for 8,000 and credit the sales (revenue) account for 8,000. The other options would either decrease cash or improperly affect revenue, which doesn’t align with how assets and revenues are increased in double-entry records.

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