Question: What is the journal entry to record a cash sale of $1,000?

Options:

1. Debit Cash $1,000, Credit Sales Revenue $1,000
2. Debit Sales Revenue $1,000, Credit Cash $1,000
3. Debit Cash $1,000, Credit Accounts Receivable $1,000
4. Debit Accounts Receivable $1,000, Credit Cash $1,000

Correct Answer: Debit Cash $1,000, Credit Sales Revenue $1,000

Solution:

The correct entry is to debit Cash and credit Sales Revenue, reflecting the increase in cash and revenue from the sale.