Beachside Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal in its operations. If the company records the cash sale of food for $18, which is the correct entry?
A) Cash Cr., $18; Food Revenue Dr., $18
B) Cash Dr., $18; Food Revenue Dr., $18
C) Cash Dr., $18; Food Revenue Cr., $18
D) Cash Cr., $18; Food Revenue Cr., $18

Question

Quizplus · Accepted Answer

The correct entry for the cash sale of food for $18 would be to debit cash for $18 and credit food revenue for $18, which is captured in option C. Option A and D are incorrect entries as they both credit cash, while option B is incorrect as it debits food revenue instead of cash.

Beachside Coffee Shop, in an Effort to Streamline Its Accounting