A company sells merchandise on credit for $6,000. The merchandise cost is $3,400. The journal that the transaction would be recorded in is the:
A) Cash disbursements journal.
B) Sales journal.
C) Purchases journal.
D) Cash receipts journal.
E) General journal.

Question

Quizplus · Accepted Answer

The transaction involves a sale on credit, so it would be recorded in the sales journal. The cost of the merchandise is not relevant for this journal entry. The cash disbursements journal is used for paying bills, the purchases journal is used for purchases made on credit, the cash receipts journal is used for recording cash received, and the general journal is used for adjusting entries and other miscellaneous transactions.

A Company Sells Merchandise on Credit for $6,000