When the Totals of the Sales Journal Are Posted at the End

question 1

Multiple Choice

When the totals of the sales journal are posted at the end of the month, there will be credits to

• A) Sales and Merchandise Inventory and debits to Accounts Receivable and Cost of Goods Sold.
• B) Accounts Receivable and Cost of Goods Sold and debits to Sales and Merchandise Inventory.
• C) Sales and debits to each individual customer account.
• D) the Sales account only, and no debits.

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Definitions:

Investment Costs

Investment costs include all the expenses associated with acquiring an asset, including purchase price, broker fees, setup costs, and any other costs necessary to bring the asset to a usable state.

Property Taxes

Taxes assessed on real estate by local government, based on the property's value.

Executor's Accounting

The financial reporting and record-keeping process conducted by an executor of an estate to track assets, liabilities, and distributions to beneficiaries.

Obligations

Responsibilities or duties bound by legal or contractual agreements.