Double-entry recording of credit sales Steps:

• Identify the transaction: Sarah's credit sale to Zara increases her sales revenue and creates a receivable from Zara.
• Apply double-entry rule: Every transaction affects two accounts with equal debits and credits.
• Record the receivable increase: Debit Zara's account (asset rises).
• Record the revenue increase: Credit sales account (revenue rises).

Why C is correct:

• Follows double-entry bookkeeping principle, where assets like receivables are debited and revenues like sales are credited (per standard accounting rules).

Why the others are wrong:

• A: Debits sales (decreases revenue) and credits Zara (decreases asset), reversing the sale effect.
• B: Describes the same entry as C but in reversed phrasing; however, conventional format lists debit first.
• D: Credits Zara (decreases asset) and debits sales (decreases revenue), opposite of a sale.

Final answer: C