Which One of the Following General Statements Is Correct -

question 13

Multiple Choice

Which one of the following general statements is correct -

• A) a sales discount is recorded as a negative amount in the receipts journal
• B) a sale return is recorded as a negative amount in the sales journal
• C) an advance from a customer is entered as a negative amount in the receipts journal
• D) all of the above statements are correct

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Definitions:

Cash Receipts Journal

A specific accounting journal used to record all receipts of cash during a particular period.

Sale On Account

A transaction where goods are sold and payment is deferred to a later date, creating an account receivable for the seller.

Accounts Payable Subsidiary Ledger

A detailed ledger that breaks down the amounts owed by a business to its suppliers or vendors into individual accounts.

Purchases Journal

A special journal used to record all purchases of merchandise on credit, tracking the accumulation of goods over a period.