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What is the journal entry for the collection of sales?

A. Debit Sales and Credit Expense


B. Credit Sales and Debit Expense


C. Debit Sales and Credit Cash


D. Debit Cash and Credit Sales

User SabDeM
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1 Answer

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Answer:

The answer is letter D, Debit Cash and Credit Sales.

Step-by-step explanation:

Sales Journal Entry- this is considered as an entry in the sales journal in order to record a credit sale of inventory. This consists of selling an inventory on credit, thus it affects four accounts namely, the accounts receivable, revenue account, inventory and cost of goods.

A typical sales journal entry will debit the account receivable for the sales price (cash) and credit the revenue account for the sales price. The cost of good will reflect the debited amount that the company paid for the inventory (cash). In the same way, the Inventory will be credited for the same price.

In a sales journal entry, the debit side (left side) will show cash while the credit side (right side) will show the sales.

User Colateral
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