When the Sales Journal's Column for Accounts Receivable and Sales

question 45

Multiple Choice

When the sales journal's column for accounts receivable and sales is totaled at the end of the month, its total is:

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

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Definitions:

Price Position

The strategy or tactic a company uses to establish their product or service's price relative to the competition.

Break-Even Analysis

A financial calculation that determines the point at which revenue equals costs, indicating no net loss or gain.

Forecasting Method

Techniques used to predict future conditions or performances, often applied in business for planning purposes.

Metropolitan Markets

Markets located within or serving large urban areas, characterized by high density and diverse consumer populations.