A Company Issued a Check for $7,900 in Payment of Merchandise

question 20

Multiple Choice

A company issued a check for $7,900 in payment of merchandise. Identify the journal the transaction would be recorded in.

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

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Definitions:

Existing Loan

Refers to a loan that is currently active or outstanding, already agreed upon, and under the process of repayment.

Personal Liability

the legal responsibility of an individual to satisfy debts or obligations incurred, using personal assets if necessary.

Partnership

A commercial arrangement in which a business is co-managed and operated by at least two people, following conditions and goals outlined in a Partnership Agreement.

Estoppel

A legal principle that prevents someone from arguing something contrary to a previous position or statement that was relied upon by others.