Where would you record an increase in sales?

Recording an increase in sales is done by crediting the income account. When a business makes a sale, it generates revenue, which increases its income. In accounting, revenues are recorded as credits because they represent a flow of economic benefits into the business, contributing positively to its financial position.

When sales are made, you would typically credit the sales or revenue account, which reflects the increase in income. This action will also balance out the corresponding debit entry, which typically would be to cash or accounts receivable, depending on whether the sale was made in cash or on credit.

Other choices, such as crediting liabilities or debiting income or proprietorship, do not accurately reflect the accounting principles. Liabilities are obligations that a company owes, and increasing sales does not create or increase liabilities. Debiting income would incorrectly suggest a decrease in income, while debiting proprietorship would imply a withdrawal or reduction in owner equity, which is not relevant when sales increase.