ABC Company uses special journals. When making a credit sale of $700 to a customer, the company would record the sale by:
A)entering $700 in the Accounts Receivable Debit column and $700 in the Sales Credit column of the sales journal.
B)entering $700 in the Accounts Payable Credit column and $700 in the Sales Credit column of the sales journal.
C)entering $700 in the Accounts Receivable Credit column and $700 in the Sales Debit column of the sales journal.
D)entering $700 in the Sales Returns and Allowances Debit column and $700 in the Sales
Credit column of the general journal.

Question

Quizplus · Accepted Answer

When making a credit sale, the company increases Accounts Receivable (a debit entry) and records the sale revenue (a credit entry). Therefore, the correct entry is $700 in the Accounts Receivable Debit column and $700 in the Sales Credit column of the sales journal.

ABC Company Uses Special Journals