What is the purpose of a sales order form and a sales journal?

Question:

What is the purpose of a sales order form and a sales journal?

Sales Revenue

Sales revenue is the major source of the company's profit and growth. A company cannot survive if there are no revenue coming in to cover all business expenditures. In the income statement, it is always the first item presented before costs, expenses, and other income.

Answer and Explanation:

A sales order form is a document filled up by the customer to list down all their purchases to the seller. This is a pre-requisite before a sale transaction consummate and the seller to issue a sales invoice as the final business document.

A sales journal is a special type of journal used to record all credit sales transactions. Cash sales are recorded using another special type of journal which is a cash receipts journal.


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How to Calculate Sales Revenue: Definition & Formula

from Financial Accounting: Help and Review

Chapter 5 / Lesson 27
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