When Sales of Merchandise Are Made for Cash, the Transaction

question 172

Multiple Choice

When sales of merchandise are made for cash, the transaction may be recorded by the following entry:

• A)Debit Sales Revenue, credit Cash
• B)Debit Cash, credit Sales Revenue
• C)Debit Sales Revenue, credit Cash Discounts
• D)Debit Sales Revenue, credit Sales Returns and Allowances

---

Definitions:

Productive Vocabulary

The set of words a person is able to produce or use actively in speech and writing.

Development of Language

Refers to the process by which humans acquire the capacity to perceive, produce, and use words to understand and communicate.

Bounded Rationality

The concept that decision-making is limited by the information available, cognitive limitations of the mind, and the time available to make the decision.

Mental Shortcuts

Cognitive strategies or heuristics that the mind uses to make decisions or judgments quickly.