Asked by Haneen Hmedat on Apr 26, 2024
Verified
Beachside Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal in its operations. If the company records the cash sale of food for $18, which is the correct entry?
A) Cash Cr., $18; Food Revenue Dr., $18
B) Cash Dr., $18; Food Revenue Dr., $18
C) Cash Dr., $18; Food Revenue Cr., $18
D) Cash Cr., $18; Food Revenue Cr., $18
Cash Receipts Journal
A specialized accounting journal used to record all money that is received by a business.
Cash Sale
A transaction where payment for a good or service is made at the time of the sale, usually in the form of cash or equivalent.
Food Revenue
Income generated from the sale of food products or services.
- Determine the objectives and varieties of accounting journals.
Verified Answer
NV
Natasha VillacrucisApr 28, 2024
Final Answer :
C
Explanation :
The correct entry for the cash sale of food for $18 would be to debit cash for $18 and credit food revenue for $18, which is captured in option C. Option A and D are incorrect entries as they both credit cash, while option B is incorrect as it debits food revenue instead of cash.
Learning Objectives
- Determine the objectives and varieties of accounting journals.