Sales JournalThe sales journal is used to record sales of merchandise on account. Cash salesof merchandise are entered in the cash receipts journal. Credit sales of assetsother than merchandise are entered in the general journal.JOURNALIZING CREDIT SALESKarns Wholesale Supply uses a perpetual inventory system. Under this system,each entry in the sales journal results in one entry at selling price—a debit toAccounts Receivable (a control account) and a credit of equal amount to Sales—and another entry at cost. The entry at cost is a debit to Cost of Goods Sold anda credit of equal amount to Merchandise Inventory (a control account). The salesjournal for Karns Wholesale Supply is shown in Illustration G-5. (It uses assumedcredit sales transactions for sales invoices 101–107.) A sales journal withtwo amount columns, like that in Illustration G-5, shows a transaction at bothselling price and cost on a single line. The reference (Ref.) column is not usedin journalizing. It is used in posting the sales journal, as explained in the next
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