When a Sales Journal's sales amount column is totalled at the end of the month, the totalis:
A)Debited to Sales and credited to Accounts Receivable.
B)Debited to Accounts Receivable and credited to Sales.
C)Debited to Accounts Receivable and credited to Cash.
D)Debited to Cash and credited to Accounts Receivable.
E)Debited to Cash and credited to Sales.

Question

Quizplus · Accepted Answer

The total sales amount from the Sales Journal is debited to Accounts Receivable because it represents amounts owed by customers, and credited to Sales to recognize the revenue earned.

When a Sales Journal's Sales Amount Column Is Totalled at the End