When posting the sales journal's activity at the end of the month, its totals are:
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

When posting the sales journal's activity at the end of the month, the accounts receivable balance increases as customers owe money for purchases they have made. Therefore, the sales are debited to accounts receivable and credited to sales.

When Posting the Sales Journal's Activity at the End of the Month