Credit Sales Formula

Credit Sales Formula

Credit Sales can be calculated by the following formula.

Credit Sale= Closing Debtor Balance + Cash received – Opening Debtor Balance

Example

Debtor – Opening Balance =  40,000

Debtor – Closing Balance =   50,000

Cash received during Year=   60,000

Solution

Credit Sale= Closing Debtor Balance + Cash received – Opening Debtor Balance

= 50,000+60,000-40,000

=70,000 (Credit Sales)