Assume that a company uses special journals for sales, purchases, cash receipts, and cash disbursements. A sales return for credit on account would be recorded in the:
A) Direct posting journal.
B) Cash disbursements journal.
C) Cash receipts journal.
D) General journal.
E) Sales journal.

Question

Quizplus · Accepted Answer

A sales return for credit on account is not a cash transaction and does not fit into the special journals for sales, purchases, cash receipts, or cash disbursements. It is recorded in the general journal, which is used for transactions that do not fit into the special journals.

Assume That a Company Uses Special Journals for Sales, Purchases