Posting a sales journal to the accounts in the general ledger requires a
A) debit to Cash and a credit to Sales Revenue.
B) debit to Sales Revenue and a credit to Inventory.
C) debit to Accounts Receivable and a credit to Inventory.
D) debit to Accounts Receivable and a credit to Sales Revenue.

Question

Quizplus · Accepted Answer

When posting a sales journal to the accounts in the general ledger, we need to record the sales revenue earned and the corresponding increase in accounts receivable. Therefore, we need to debit the Accounts Receivable account (since it is an asset), and credit the Sales Revenue account (since it is a revenue). Option A is incorrect since we are not receiving cash immediately, but rather creating a credit sale. Option B is incorrect since inventory is not directly involved in the sale. Option C is incorrect since we are not reducing inventory, but rather creating a sale.

Posting a Sales Journal to the Accounts in the General