What does the total of the sales journal represent?

A sales journal entry records a cash or credit sale to a customer. It does more than record the total money a business receives from the transaction. Sales journal entries should also reflect changes to accounts such as Cost of Goods Sold, Inventory, and Sales Tax Payable accounts.

When posting the column totals of a cash payments journal a debit should be posted to?

Accounts Payable
Correct Answer: Option 4. Accounts Payable.

When would the sales discount column be used in the cash receipt journal?

Discount column: Used to record the amount of cash discount allowed at the time of receiving cash. 6. Sales column: Used to record the sale of merchandise for cash.

Where is the total of the sales journal posted?

The totals from the Sales Journal will also be posted to the Accounts Receivable account in the Main Ledger (GL). So, rather than doing the six individual debits and credits for each customer, the accountant will post the sum of those six into the GL.

How do you record sales in sales journal?

A sales journal entry records the revenue generated by the sale of goods or services. This journal entry needs to record three events, which are: The recordation of a sale….In the case of a cash sale, the entry is:

1. [debit] Cash.
2. [debit] Cost of goods sold.
3. [credit] Revenue.
4. [credit].
5. [credit] Sales tax liability.

What do we record in sales journal?

Definition: The sales journal is used to record all of the company sales on credit. Most often these sales are made up of inventory sales or other merchandise sales. Notice that only credit sales of inventory and merchandise items are recorded in the sales journal.

When posting a column total in the purchase journal a credit should be posted to?

Posting the purchases journal to subsidiary and general ledger

1. The total of accounts payable column is credited to accounts payable account in the general ledger.
2. The total of inventory column is posted to inventory account in the general ledger.

When posting a column total in the purchase journal a credit should be posted to *?

Terms in this set (10)

1. When posting a column total in the purchases journal, a credit should be posted to.
2. Services provided for cash is recorded in the revenue journal.
3. Once an accounting system has been implemented, feedback will be used to continuously analyze and improve the system.

Which journal columns are used to record sales on account?

The journal columns used to record receiving cash from sales are Cash Debit and Sales Credit. 3. 4. The journal columns used to record paying cash for rent are General Debit and Cash Credit.

Why should sales to and receipts of cash from credit customers be recorded and posted immediately?

Each day, the credit sales recorded in the sales and cash receipts journal are posted to the appropriate customer’s accounts in the accounts receivable ledger. This allows you to know not only the total amount owed to you by all credit customers, but also the total amount owed by each customer.

When should entries from the sales journal be posted?

Posting to general ledger: At the end of each month or another appropriate period, the column totals of sales journal are posted to relevant general ledger accounts as follows: The total of accounts receivable & sales column is debited to accounts receivable account and credited to sales account in the general ledger.

Where is the debit entry for the total of the sales journal posted to?

At the end of each month (or at fixed intervals), the amount column of the sales journal is added and the total is posted as a debit to accounts receivable and a credit to the sales account in the general ledger.

How are the column totals of sales journal posted to accounts?

At the end of each month or another appropriate period, the column totals of sales journal are posted to relevant general ledger accounts as follows: The total of accounts receivable & sales column is debited to accounts receivable account and credited to sales account in the general ledger.

How to post entries in sales journal in accounts receivable?

In general ledger, the cost of goods sold account is debited and inventory account is credited by the total of this column. The entries in sales journal must be posted from sales journal to individual accounts in accounts receivable subsidiary ledger and general ledger. The posting procedure is briefly explained below:

What is the difference between sales journal and cash receipts journal?

Every transaction that is entered in sales journal essentially results in a debit to accounts receivable account and a credit to sales account. All cash sales are recorded in another special journal known as cash receipts journal.

Which of the following is not recorded in sales journal?

The sale of used or outdated assets (such as old plant, machinery, equipment and newspapers etc.) are not recorded in sales journal. These transactions are entered in general journal (also known as journal proper).