 In this presentation, we will take a look at multiple choice questions related to special journals. First question, a sales return for credit on account would be recorded in the a, sales journal, b, general journal, c, cash receipts journal, d, direct posting journal, e, cash disbursements journal. So once again, we will read through these and see if we can eliminate some of the transactions or some of the answers with the process of elimination. A sales return for credit on account would be recorded in the a, sales journal. Now the sales journal would be what we use to record the sale and it's a very specific journal. It's only going to be sales. It's going to have like a debit to sales and a credit to the account, a debit to accounts receivable and a credit to sales. And then if we're on a perpetual inventory system, a debit to the cost of goods sold and a credit to inventory. Very specific. It's not going to be there for the sales return because then we would have to reverse all that and we would so and the columns aren't set up to do that. So it can't be the sales journal wouldn't be able to do that. And then B says the general journal. Now that's what we use when we don't have special when we can't find a special journal to record this. So if we can't find a special journal, we will default to or fall back on the use of the general journal, which would just be to record debits and credits for this transaction. C, the cash receipts journal. Now if we had a sales return for credit, if we think about that journal entry, you know, if we made a sale, the best way to think about this journal tree is to is to say what would happen if we made a sale and then reverse it. If we made a sale, we would debit the accounts receivable on account, we would credit the sales revenue. And then we would debit the cost of goods sold. And we would credit the inventory. Okay. So if we were to reverse that, then we would have to say that we had a sales return, now we wouldn't debit sales, we would call it sales return, that we would debit, and then we would credit accounts receivable. If the sale was returned, we would debit inventory because the inventory came back in. And then we would credit costs of goods sold. And that sounds very sloppy to write with a mouse like this, but but that's basically what we'd be doing now. There's no cash involved here. So it can't be going to the cash receipts journal to the point of all that. And then D, we have the direct posting journal. And I mean, I'm not sure that's a thing. So I'll keep it for now. But I'm not sure if that's really a thing. And then E says cash disbursements journal. And once again, there's no cash in this journal entry. So it can't go to the either of the cash journals. So we're left with either B or D. So once again, if we read through this, we say a sales return for credit on account would be recorded in the either be general journal, which is kind of like the default journal, or D the direct posting journal. So really, the question here is, you know, the direct posting journal, is that really a thing? Because if it's and if it is, would this journal with this transaction go to it? And I don't think it's a thing. So I think that's not really real. And therefore, it would have to default to the general journal, we would just make a normal journal entry for this, as if we were not using special journals here, because this transaction doesn't fit neatly into one. So let's read it one more time. A sales return for credit on account would be recorded in the be general journal. Next question, the posting of the sales journal at the end of the period includes a, A debit to sales and credit to accounts receivable, B debit to accounts receivable and credit to cash, C debit to cash and credit to accounts receivable, D debit to accounts receivable and credit to and credit sales, and E debit to cash and credit to sales. One more time, we'll read through this and see if we can eliminate some lawsuits with the process of elimination. The posting of the sales journals at the end of the period includes a. So we're gonna we're talking about we want to think through this a little bit before we go through here because if we just read debits and credits will get turned around all all over the place if we don't have some idea before as we go into this. So the posting of the sales journal here at the end of the period. So we're really looking for the normal journal entry for the sales journal. Now the sales journal is a really specific journal. We only post things to the sales journal when we make a sale on account and that means that we are going to debit accounts receivable and credit sales. So this is one of those types of questions where you really want to think this through before reading it for a couple reasons. One if you read through this it doesn't you can't see the debits and credits formatted as debits and credits and to me that throws me off I'm just reading words and it doesn't look like a debit in a credit format so it kind of throws me off in two. If you just read debits and credits like debit this credit that without first thinking of what you think it should be then I think that's just you're just gonna confuse yourself I think that's gonna be confused. So I would write it out and try to say hey what do I think it should be first and then go through here and see if we can verify this. So we're gonna say A debit sales and credit to accounts receivable. Now see this is one that's meant to turn us around because we don't debit sales sales as a revenue account only goes up in the credit direction we credit sales so I'm gonna eliminate that one. B says debit accounts receivable and credit to cash and that would mean that doesn't really happen typically accounts receivable goes up and oh no yeah we got paid that's when we got paid on account so anyways not part of the sales journal because that's would be after the sale happened and it wouldn't be the actual sale then C says debit to cash and credit to accounts receivable and again cash is involved here we don't record cash in the sales journal only things dealing with sales on account so it's not going to be that D says debit accounts receivable and credit sales that looks like what we've guessed here so I think that's going to be it but let's read the last one D says debit cash and credit to sales now this one's a tricky one too because it does say that we're crediting sales that makes sense and we could make a sale for cash and debit cash however it wouldn't go in the sales journal it would go into the into the cash receipts journal because we got cash so these two it probably could eliminate down to these two and then say will be D is actually the correct answer because cash is not involved in the sales journal so final answer the posting of the sales journal at the end of the period includes a D debit to accounts receivable and credit to sales next one the primary difference in the sales journal for the perpetual and periodic inventory systems is a only the perpetual system has a column to record cost of goods sold be sales tax receivable column is used under the perpetual system but not the periodic see the sales tax payable column is used under the perpetual system but not the periodic D only the perpetual system uses receivable column E perpetual the perpetual system has a cash column okay let's read through this one more time see if we can eliminate some of these very long responses here the primary difference in the sales journal for the perpetual and periodic inventory system is so before we go through it let's try to think this through a bit here we're looking for a difference in the sales journal now the sales journals that journal we make when we make sales on account so that's typically something where we have like accounts receivable going up and sales or revenue being the other side so we're talking about that journal very specific type of transaction that includes this transaction now a perpetual and a periodic inventory system has to do with inventory which would be the other side of this transaction meaning when we make a sale on account it's debiting costs of goods sold and inventory so the so that's going to be the question under under a perpetual system we record this second piece as we go each time we make a sale under a periodic system we're going to do a physical count and rely on that physical count to record the cost of goods sold and inventory periodically at the end of the system so you would think that this piece of the transaction would be the difference for a sales journal type of journal for for this information so let's go through this a only the perpetual system has a column to record cost of goods sold and that it's kind of true because that's deals with this now it says only cost to get sold it should be cost to get sold and inventory so that looks correct but maybe it's not totally correct because it doesn't have the rest of it so I'd read through the rest of them see if there's a better answer that would be more complete if not I think that might be it be sales tax receivable column is used under the perpetual system but not the periodic now I the sales tax whatever system we use for sales tax would have to be included in either system because we would still be recording the sales tax in this in the similar way under the perpetual periodic so I don't think that's it see the sales tax payable is used under the perpetual system but not the periodic again it's that the problem between the two is really on the cost to get sold and inventory side not on the sales and receivable side so I don't think it's dealing with sales tax D only the perpetual system system uses a receivable column that that's not true because it's really on this side the cost to get sold and inventory were concentrated on for any kind of problem both of them will be debiting accounts receivable and crediting sales and e perpetual system has a cash column and the sales journal doesn't have a cash column doesn't matter what system we're using if cash is received then we would be dealing with the cash receipts journal so it can't be that so I think a is the most proper answer let's read it one more time the primary difference in the sales journal for the perpetual and periodic inventory systems is a only the perpetual system has a column to record cost of goods sold