Credit sales of assets other than merchandise inventory occur infrequently and are recorded in the ________.
A) sales journal
B) cash receipts journal
C) accounts receivable journal
D) general journal

Question

Quizplus · Accepted Answer

Sales of assets other than merchandise inventory are not part of the regular operations of a business and therefore should not be recorded in the sales journal or accounts receivable journal. Since these sales do not involve cash receipts, they should not be recorded in the cash receipts journal. Instead, they should be recorded in the general journal, which is used to record all transactions that cannot be recorded in the other specialized journals.

Credit Sales of Assets Other Than Merchandise Inventory Occur Infrequently