Meaning & use
credit sales
Last updated
Meanings
nounpluralbusinessfinance
sales in which goods or services are provided now and payment is received at a later date
Grammar: Used as a plural noun; takes a plural verb: Credit sales are recorded in the accounts receivable ledger.
Patterns
- credit sales of something
- record credit sales
- increase credit sales
The company's credit sales rose by 10% last quarter.
Credit sales are recorded as accounts receivable until the customer pays.
We offer credit sales only to approved business customers.
nounpluralbusinessfinance
the total amount of money from sales made on credit during a period
Grammar: Often used with figures or percentages: credit sales of $50,000.
Patterns
- credit sales of $...
- total credit sales
Total credit sales for the year reached $2 million.
The report separates cash sales from credit sales.
Common combinations
- credit sales ledger
- The accountant updated the credit sales ledger at the end of the month.
- cash sales and credit sales
- The shop tracks both cash sales and credit sales separately.
- credit sales policy
- The manager revised the credit sales policy to reduce risk.
- credit sales terms
- Our credit sales terms require payment within 30 days.
Synonyms and how they differ
- sales on account
- A more formal accounting term with the same meaning; often used in financial statements.
- sales on credit
- A common alternative phrase, slightly less technical than 'credit sales'.
Opposites
Word family
Commonly confused: credit sales or debit sales?
credit sales vs debit sales
Not a standard term; 'debit' usually refers to payments taken from an account, not a type of sale.
Practice
In accounting, what are 'credit sales'?
Choose one answer.
Credit sales are sales where goods or services are provided now and payment is received later, creating accounts receivable. Cash sales are the opposite, where payment is immediate.
Make it your own
Write a sentence using “credit sales”, then check it and compare it with the examples above.