What is the general ledger posting from the credit sales journal?
A) DR Sales, CR Accounts receivable
B) DR Sales, CR GST payable, CR Cash
C) DR Accounts receivable, CR Sales, CR GST payable
D) DR Cash, DR GST payable, CR Accounts receivable

Question

Quizplus · Accepted Answer

When a credit sale is made, it is recorded as an increase in accounts receivable and an increase in sales. Since GST (Goods and Services Tax) is charged on sales, it is recorded as an increase in GST payable. Therefore, the correct posting in the general ledger for credit sales journal is DR Accounts receivable, CR Sales, CR GST payable.

What Is the General Ledger Posting from the Credit Sales