The accounting ledger for goods sold on credit are debit

The accounting ledger for goods sold on credit are debit to the debtors account and credit to the sales account. When goods are sold on credit, it means the payment will be received in the future. So, the person who purchased the goods becomes the debtor of the business until the payment is made. Therefore, the business records the sale in the sales account as a credit entry, and records the increase in the debtor's account as a debit entry. This helps in maintaining accurate records of the amount of goods sold on credit and the amount that is outstanding, which helps in managing the business's cash flow and collecting the payments on time.