Asked by Julio Cesar Meirelles on Jun 07, 2024
Verified
Reno's Wholesale uses a sales journal. An entry in this journal represents a
A) debit to Cash; credit to Sales Revenue.
B) debit to Accounts Receivable; credit to Sales Revenue.
C) debit to Sales Discounts; credit to Cash.
D) debit to Accounts Payable; credit to Sales Returns and Allowances.
Sales Journal
A specialized accounting journal used to keep track of the sales of items on credit.
Accounts Receivable
Accounts receivable refers to the money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.
Sales Revenue
The total amount of money generated from the sale of goods or services by a company before any expenses are subtracted.
- Determine the suitable journal for documenting particular transaction categories.
- Understand the process involved in journalizing transactions within special and general journals.
Verified Answer
JD
Jagdeep DhaliwalJun 07, 2024
Final Answer :
B
Explanation :
A sales journal records sales made on credit, which generates an increase in Accounts Receivable and Sales Revenue. Option A is incorrect because it would represent a cash sale, not a credit sale. Option C would represent a sale that was made with a discount, which is not specified in the question. Option D would represent a return or allowance, which is not the same as a sale.
Learning Objectives
- Determine the suitable journal for documenting particular transaction categories.
- Understand the process involved in journalizing transactions within special and general journals.