ABC Company uses special journals.When making a credit sale of $700 to a customer,the company would record the sale by:
A) entering $700 in the Accounts Receivable Debit column and $700 in the Sales Credit column of the sales journal.
B) entering $700 in the Accounts Receivable Credit column and $700 in the Sales Debit column of the sales journal.
C) entering $700 in the Accounts Payable Credit column and $700 in the Sales Credit column of the sales journal.
D) entering $700 in the Sales Returns and Allowances Debit column and $700 in the Sales Credit column of the general journal.

Question

Quizplus · Accepted Answer

When making a credit sale, the company would record the transaction in the sales journal, which is a special journal used for recording credit sales. The Accounts Receivable Debit column is used to record the increase in accounts receivable, which is the amount owed by the customer for the credit sale. The Sales Credit column is used to record the revenue earned from the sale. Therefore, the correct entry would be to enter $700 in the Accounts Receivable Debit column and $700 in the Sales Credit column of the sales journal.

ABC Company Uses Special Journals