Assume that a company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. A sales return for credit on account would be recorded in the:
A) Sales journal.
B) General journal.
C) Cash receipts journal.
D) Accounts receivable ledger.
E) Cash disbursements journal.

Question

Quizplus · Accepted Answer

A sales return for credit on account does not fit the specific purpose of the sales, purchases, cash receipts, or cash disbursements journals, which are used for recording sales, purchases, cash received, and cash paid out, respectively. Therefore, it would be recorded in the general journal, which is used for transactions that do not fit into the specific categories of the other journals.

Assume That a Company Uses a Sales Journal, a Purchases