Each special journal is devoted to similar kinds of transactions. Transactions are journalized on one line of a special journal, with columns devoted to specific accounts, dates, names, posting references, explanations, and other necessary information. A sales journal is used to record sales of inventory on credit. Sales of inventory for cash are recorded in a cash receipts journal. Sales of noninventory assets on credit are recorded in the general journal. For posting, the account columns are totaled at the each of each period and posted to the general ledger. Individual amounts in the Accounts Receivable column are posted to the accounts receivable subsidiary ledger.

Assume that two transactions have been entered into the sales journal. Which of the following statements is correct with regards to the posting of those transactions from the sales journal?

multiple choice

• Account numbers are entered in the PR column for each transaction row of the sales journal when amounts are posted to subsidiary ledgers.

• Account numbers are entered in the PR column for each customer account in the accounts receivable subsidiary ledger.

• Posting of sales to customer accounts in the accounts receivable ledger are indicated by placing S4 in the PR column of the sales journal for each transaction.

• Check marks are entered in the PR column for each transaction row of the sales journal when amounts are posted to subsidiary ledgers.