When Posting the Sales Journal's Activity at the End of the Month

question 150

Multiple Choice

When posting the sales journal's activity at the end of the month, its totals are:

• A) Debited to Sales and credited to Accounts Receivable.
• B) Debited to Accounts Receivable and credited to Sales.
• C) Debited to Accounts Receivable and credited to Cash.
• D) Debited to Cash and credited to Accounts Receivable.
• E) Debited to Cash and credited to Sales.

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Definitions:

Small Firms

Businesses that operate on a smaller scale than larger enterprises, often characterized by fewer employees and lower income or revenue.

Large Firms

Enterprises or corporations that operate on a large scale, typically having significant market power, resources, and complex organizational structures.

Scale of Production

Refers to the size of the operation or the volume of output produced by a business or manufacturing plant.

Average Total Cost

Average Total Cost is the total cost of production divided by the total quantity produced, representing the per unit cost of production.