Which of the following statements is not correct?
A) Use of a sales journal eliminates repetition in posting individual entries to the Accounts Receivable account in the general ledger.
B) A journal that is used to record only one type of a transaction is called a special journal.
C) The sales slip is the source document for sales on credit transactions.
D) If the firm must collect sales tax on retail transactions,the sales journal should have a Sales Tax Payable Debit column.

Question

Quizplus · Accepted Answer

A sales journal typically includes a Sales Tax Payable Credit column, not a Debit column, as sales tax collected is a liability.

Which of the Following Statements Is Not Correct