QUESTION IMAGE
Question
which journal columns are used when services are sold on account?
sales credit and cash debit
sales credit and general debit
cash credit and general debit
sales debit and general credit
question 20
3 pts
choose the answer.
which transaction requires that a checkmark be placed in the general account title and post
ref. columns?
sold services on account
received cash from sales
received cash from owner as an investment
paid cash for expenses
When services are sold on account, it means the customer will pay later (accounts receivable). In journal entries, revenue (Sales) is credited (as it increases) and since it's on account (not cash), we use the General column for the debit (to Accounts Receivable).
For the second question, when services are sold on account, we need to record the details in the General account title (for Accounts Receivable) and Post Ref. columns. Other transactions like cash - related ones (received cash from sales, received cash from owner, paid cash) usually have more straightforward column - specific entries (like Cash columns) and don't require the same General account title and Post Ref. handling as the credit - sale (on account) transaction.
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First question: Sales credit and General debit.
Second question: sold services on account.