Gable's Wholesale uses a sales journal. An entry in this journal represents a
A) debit to Cash; credit to Sales Revenue.
B) debit to Accounts Receivable; credit to Sales Revenue.
C) debit to Sales Discounts; credit to Cash.
D) debit to Accounts Payable; credit to Sales Returns and Allowances.

Question

Quizplus · Accepted Answer

A sales journal is used to record sales made on credit, so the entry should include a debit to Accounts Receivable (since the company is owed the money) and a credit to Sales Revenue. Option A is incorrect because it assumes that all sales are made for cash, which is not the case. Option C is incorrect because it represents a cash discount given to a customer who pays early, which is not mentioned in the question. Option D is incorrect because it represents a sales return or allowance, which is a separate transaction that would be recorded in a different journal.

Gable's Wholesale Uses a Sales Journal