Question

A company is examining cash receipts information, including opening cash balance, cash on hand, and sales register tape. How would you journalize this entry?

A) Debit Cash on Hand, Credit Sales
B) Debit Sales, Credit Opening Cash Balance
C) Debit Cash, Credit Opening Cash Balance
D) Debit Cash, Credit Cash on Hand

Answer 1

To journalize a company's cash receipts from sales, the entry is a debit to Cash on Hand and a credit to Sales, correctly noted as option A.

Step-by-step explanation:

The inquiry pertains to the proper journalization of cash transactions within a company. When a company records its cash receipts from sales, the journal entry typically involves a debit to the Cash on Hand account (which increases the asset account) and a credit to the Sales account (which increases the revenue account). Therefore, the correct way to journalize the entry in this context would be option A) Debit Cash on Hand, Credit Sales.