In Chapter 3, the account distribution for a sales receipt is:
A)Debit Sales;credit Checking.
B)Debit Checking;credit Sales.
C)Debit Accounts Payable/vendor;credit Checking.
D)Debit Checking;credit Accounts Receivable.
E)None of these.

Question

Quizplus · Accepted Answer

When a sales receipt is issued, it typically means that a sale has been made and payment has been received immediately. Therefore, the correct accounting entry is to debit (increase) the Checking account, reflecting the receipt of cash or cash equivalent, and to credit (increase) the Sales account, reflecting the revenue earned from the sale.

In Chapter 3, the Account Distribution for a Sales Receipt