Asked by Julie Prine on Jul 15, 2024
Verified
Posting a sales journal to the accounts in the general ledger requires a
A) debit to Cash and a credit to Sales Revenue.
B) debit to Sales Revenue and a credit to Inventory.
C) debit to Accounts Receivable and a credit to Inventory.
D) debit to Accounts Receivable and a credit to Sales Revenue.
Sales Journal
A specialized accounting journal used to record all sales transactions on credit.
Accounts Receivable
Unpaid customer balances for goods provided or services rendered by a business.
Sales Revenue
Funds received by a company for products sold or services delivered.
- Choose the appropriate journal to catalogue distinct transaction types.
- Learn the method of transferring journal entries to the general and subsidiary ledgers.
Verified Answer
BB
Bineta BarryJul 21, 2024
Final Answer :
D
Explanation :
When posting a sales journal to the accounts in the general ledger, we need to record the sales revenue earned and the corresponding increase in accounts receivable. Therefore, we need to debit the Accounts Receivable account (since it is an asset), and credit the Sales Revenue account (since it is a revenue). Option A is incorrect since we are not receiving cash immediately, but rather creating a credit sale. Option B is incorrect since inventory is not directly involved in the sale. Option C is incorrect since we are not reducing inventory, but rather creating a sale.
Learning Objectives
- Choose the appropriate journal to catalogue distinct transaction types.
- Learn the method of transferring journal entries to the general and subsidiary ledgers.
Related questions
Cash from Sales of Merchandise Will Be Recorded in the ...
If an Owner Withdraws Cash for Personal Use the Transaction ...
If a Company Purchases Merchandise for Cash the Transaction Should ...
An (X) Below the Other Accounts Column in a Cash ...
Which One of the Following Columns in a Cash Receipts ...