Final answer:
Sales made on account are recorded in the Sales Journal, a special journal used for credit sales transactions, which are then summarized and posted to the General Ledger.
Step-by-step explanation:
When sales are made on account, meaning no cash is received at the point of sale, these transactions are recorded in the Sales Journal. The Sales Journal is a special journal specifically used for recording the credit sales of a business. This journal is then periodically summarized and posted to the accounts receivable account in the General Ledger, where individual customer accounts are maintained. Items in the Sales Journal typically include the date of sale, customer name, invoice number, and the amount of the sale. The purpose of using a Sales Journal is to streamline the accounting process and to maintain a clear record of all sales transactions made on credit.