Journal Entry Distributions—Proposals

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Proposal transactions are not posted to the General Ledger. When you invoice the customer for items included in the proposal, the transaction is posted to the General Ledger in the following manner:

Sales Journal

Transaction

Debits

Credits

Invoice on account

Accounts Receivable

Sales Income, Freight, and Sales Tax Payable

Note: For companies using the cash-basis accounting method, Accounts Receivable is replaced with <Cash Basis> and is not recorded in the General Ledger. Instead, income and cash are recorded when the payment is received for the sale.