During March, Seconds Best Company had cash sales of $10,000 and sales on account of $60,000.In April, payments on account totaled $50,000.
-Use the information above to answer the following question.The journal entry prepared by Seconds Best to record the March sales would include a debit to:
A) Cash for $10,000, debit to Accounts Receivable for $60,000, and credit to Sales Revenue for $70,000.
B) Cash for $10,000, debit to Unearned Revenue for $60,000, and credit to Sales Revenue for $70,000.
C) Cash for $10,000, debit to Accounts Payable for $60,000, and credit to Sales Revenue for $70,000.
D) Cash and credit to Sales Revenue for $10,000.

Question

Quizplus · Accepted Answer

The journal entry to record the March sales would include a debit to Cash (for the cash sales) and a debit to Accounts Receivable (for the sales made on account). The total amount of the debits would be $70,000 ($10,000 + $60,000). The credit entry would be to Sales Revenue for $70,000 to record the total sales made during March. Therefore, the correct answer is A.

During March, Seconds Best Company Had Cash Sales of $10,000