Multiple choice

Assets sold on credit are entered in

  1. sales journal

  2. purchase journal

  3. journal proper

  4. All the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The sales journal is reserved specifically for the credit sale of goods (inventory). When an asset other than inventory, such as machinery or furniture, is sold on credit, it must be recorded in the journal proper. This is because it does not fit into the specialized subsidiary books designed for routine inventory transactions.

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