Assume That a Company Uses Special Journals for Sales,purchases,cash Receipts,and

question 70

Multiple Choice

Assume that a company uses special journals for sales,purchases,cash receipts,and cash disbursements.A sales return for credit on account would be recorded in the:

• A)Sales journal.
• B)General journal.
• C)Cash receipts journal.
• D)Direct posting journal.
• E)Cash disbursements journal.

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Definitions:

Priority

The status of being regarded or treated as more important than other matters.

Purchase Money Security Interest

A security interest that is (1) taken or retained by the seller of collateral to secure all or part of its purchase price or (2) taken by a debtor to acquire rights in or the use of the collateral if the value is so used.

Inventory Collateral

Assets from a company's inventory that are pledged to secure a loan.

Notification

The act of formally or officially informing someone about a fact, condition, or event.