When merchandise is sold on account, it is usually recorded in the
A) cash receipts journal.
B) purchases journal.
C) sales journal.
D) cash payments journal.

Question

Quizplus · Accepted Answer

Merchandise sold on account is recorded in the sales journal, which is used to record credit sales. The cash receipts journal is used to record cash received, the purchases journal is used to record purchases of inventory, and the cash payments journal is used to record cash payments.

When Merchandise Is Sold on Account, It Is Usually Recorded