In a firm that uses special journals, a sale of merchandise on credit is recorde

Question

In a firm that uses special journals, a sale of merchandise on credit is recorded in the A. cash payments journal B. cash receipts journal. C. sales journal. D. purchases journal. 1. A. cash payments journal B. cash receipts journal. C. sales journal. D. purchases journal. In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the A. cash payments journal B. cash receipts journal. C. purchases journal. D. general journal. 3. 4. In a firm that uses special journals, the issuance of a check to pay a creditor on account is recorded in the A. cash payments journal. B. cash receipts journal. C. sales journal. D. purchases journal 5. Which of the following statements is correcti A. The sales journal is used for recording both cash sales and credit sales. B. Since the sales journal is used for a single purpose, there is no need to enter any descriptions C. To provide an adequate audit trail, sales on credit should be recorded in both the sales journal and the general journal. The complete information for each sale of merchandise on credit can be recorded on one line of the cash receipts journal. D. 6. Which of the following statements is not correct? A. Postings to the accounts receivable subsidiary ledger are usually made once a month on the last day of the month B. C. D. Before any posting to the subsidiary ledger takes place, the equality of the debits and credits recorded in the sales journal are proved by comparing the column totals. Before any posting to the general ledger takes place, the equality of the debits and credits recorded in the sales journal are proved by comparing the column totals. When special journals are used, postings to the accounts receivable account in the general ledger are usually made once a month on the last day of the month. If a firm does not have a sales returns and allowances journal, the entries for these transactions are made in A. 8. C. D. 7. the sales journal. the general journal. the cash receipts journal. the cash payments journal.

Explanation / Answer

Since, multiple questions have been posted, I have answered the first two.

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Question 1:

Sales Journal. (which is Option C)

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Explanation:

Option A is incorrect. As the sales is on credit, no cash is involved. Also, the transaction is related to sale, so no payment is involved.

Option B is incorrect. As the sales is on credit, no cash is involved at the time of sale. Also, cash receipts journal is used to record cash sales and not credit sales.

Option D is incorrect. As the transaction is related to sale, there would be no posting in the purchases journal.

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Question 2:

Cash Receipts Journal. (which is Option B)

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Explanation:

Option A is incorrect. As the transaction is related to sale, so no payment is involved.

Option C is incorrect. As the transaction involves receipt of cash, the transaction will not get recorded in sales journal. If the sales transaction was on account (credit), than there would have been a posting in the sales journal.

Option D is incorrect. As the transaction is related to sale, there would be no posting in the purchases journal.

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