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Question

How would your company track sales income in a journal entry in the accounting cycle?

recorded as a credit

recorded as a debit

recorded as a balance

recorded as a closure

Answer 1

In the accounting cycle, sales income is typically recorded as a credit in a journal entry. In double-entry accounting, when a sale is made, the revenue is credited to the appropriate revenue account, and the corresponding debit is made to either cash or accounts receivable, depending on whether the sale was made in cash or on credit.

So, the correct answer is:

recorded as a credit