Which journal is used for receiving cash for merchandise sold?

The cash receipts journal is specifically designed to record all cash inflows, particularly those resulting from merchandise sold. When a business sells goods or services and receives payment in cash, this transaction is documented in the cash receipts journal. This journal provides a detailed account of the cash received, allowing for effective tracking and management of cash flow within the business.

In practice, using a cash receipts journal not only organizes financial information but also facilitates the preparation of financial statements and ensures accurate record-keeping for auditing purposes. Therefore, for transactions involving cash sales, this journal is the correct choice, as it successfully captures all necessary details of cash transactions in one central location. This is essential for maintaining financial accuracy and transparency.