Question

Sales of goods to X for cash should be debited to: *

2 points

Sales account

Cash account

X account

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Answer 1

Answer:

The correct answer is Cash account.

Step-by-step explanation:

• Cash a/c Dr. will be the journal entry for the selling of items to X for cash.
• The cash account should be debited because the amount of cash has increased because the customer paid in cash at the point of sale.
• Cash and goods accounts are involved in cash sales of goods.
• Money and products both have real accounts.
• The true account rule states, "Debit what comes in."
• Cash is entering the system in response to sales of items, hence the cash account needs to be debited.

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