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Can a sales journal be used to record sales on account and a cash sale? Why or why not?

a) Yes, because it simplifies the recording process.
b) No, because sales and cash transactions require separate journals.
c) Yes, but only in manual accounting systems.
d) No, because it violates accounting principles.

User Joes
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Final answer:

A sales journal is used solely for recording sales on account, not cash sales, because different types of transactions must be documented in separate journals for clear record-keeping.

Step-by-step explanation:

The question pertains to how different sales transactions should be recorded in accounting records. A sales journal is specifically used for recording credit sales, that is, sales on account. Conversely, cash sales transactions are recorded in a different journal, commonly referred to as a cash receipts journal. This separation is based on the fundamental accounting principle of segregating different types of transactions for clarity and control purposes.

Therefore, the correct answer is b): No, because sales and cash transactions require separate journals. This ensures accurate record-keeping and financial reporting. Recording both types of transactions in a single sales journal could lead to confusion and errors in the accounting process, therefore it is not a common practice.

User Gjutras
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