Which 3 statements are true about journal entries? (Quick Books) (Select all that apply)

1.Total debits must equal total credits

2.You can post to Products and Services in a journal entry

3.When posting to the accounts receivable account, you must specify a vendor

4.When posting to the accounts receivable account, you must specify a customer

5.You can post to multiple accounts receivable and/or accounts payable accounts in the same journal entry

1.Total debits must equal total credits

4.When posting to the accounts receivable account, you must specify a customer

5.You can post to multiple accounts receivable and/or accounts payable accounts in the same journal entry

Explanation:

1.

A Journal entry follows the concept of double-entry. In the double-entry principle, a debit entry equals a credit. After posting all the required entries total debits are equal to the total credits.

4.

The business makes sales to customers. Some sales are made on cash or some are made on credit. In the case of credit sales, the receivables are made. To record the credit sale entry we must specify the customer in the debit entry against the credit entry of sales.

5.

in recording the credit sales or purchases multiple receivable or payable accounts can be used and a single entry of sales of purchases can be posted against these accounts. For example

Journal Entry with multiple receivables accounts.

DR. Customers A $1,000

DR. Customers B $2,000

DR. Customers C $3,000

CR. Sales $6,000

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