When the totals of the sales journal are posted at the end of the month, there will be credits to
A) Sales and Merchandise Inventory and debits to Accounts Receivable and Cost of Goods Sold.
B) Accounts Receivable and Cost of Goods Sold and debits to Sales and Merchandise Inventory.
C) Sales and debits to each individual customer account.
D) the Sales account only, and no debits.

Question

Quizplus · Accepted Answer

The totals of the sales journal are posted at the end of the month to the general ledger. The total sales amount is credited to the Sales account, and the total cost of goods sold is debited to the Cost of Goods Sold account. The total accounts receivable amount is debited to the Accounts Receivable account, and the total merchandise inventory amount is credited to the Merchandise Inventory account.

When the Totals of the Sales Journal Are Posted at the End