Which of the following statements is not correct?
A)The sales slip is the source document for sales on credit transactions.
B)A journal that is used to record only one type of a transaction is called a special journal.
C)Use of a sales journal eliminates repetition in posting individual entries to the Accounts Receivable account in the general ledger.
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

The correct statement regarding sales tax in accounting is that it should be recorded in a Sales Tax Payable Credit column, not a Debit column, because sales tax collected on behalf of the government is a liability, not an expense.

Which of the Following Statements Is Not Correct