Charge sales
From Wikicpa
Charge sales are sales made on a credit basis in which delivery of the goods or services precedes the collection of the sale amount. Charge sales are normally recognized in the accounts as revenue when the sales is recorded.
Unlike Cash sales, charge sales require a waiting period in order to collect the selling price. As a result, the vendor maintains individual subsidiary accounts with customers which are reported within the overall accounts receivable balances.
The terms of credit sales are usually standard for a company and generally offer a cash discount for prompt payment. Credit sales are normally entered as gross amounts but it is considered acceptable to record such sales at net amounts. See cash discounts for additional details.
