Posting a sales journal to the accounts in the general ledger requires a
A) debit to Cash and a credit to Sales Revenue.
B) debit to Sales and a credit to Inventory.
C) debit to Accounts Receivable and a credit to Cost of Goods Sold.
D) debit to Accounts Receivable and a credit to Sales Revenue.

Question

Quizplus · Accepted Answer

A sales journal records all sales transactions made by a company. When posting to the accounts in the general ledger, the accounts affected will depend on the type of transaction. In this case, the sales journal transaction involves a sale on credit, so the accounts affected will be Accounts Receivable (debited because it is an increase in the amount owed to the company) and Sales Revenue (credited because it is an increase in revenue earned by the company). Therefore, the correct answer is D - debit to Accounts Receivable and a credit to Sales Revenue.

Posting a Sales Journal to the Accounts in the General