When comparing a receipt to the journal entry, is the date entered correctly?

When comparing a receipt to the journal entry, is the date entered correctly?

• A. No. The date should be 4/21/2023, not 4/25/2023.
• B. No. The date should be 4/26/2023, not 4/25/2023.
• C. Yes. Everything is recorded correctly.
• D. No. The date should be 4/24/2023, not 4/25/2023.

Answer: (B)

When recording a financial event, the date on the journal entry should reflect when the transaction is actually posted in the books, not just the date the receipt was issued. In many systems, cash received flows into the journal on the next business day after the receipt date due to processing and cutoff times. So, if the receipt shows 4/25/2023, the proper journal entry date is typically the following day, 4/26/2023. Using 4/25/2023 would misstate the posting date and make the entry fall in the wrong period. Therefore, the correct practice is to date the journal entry 4/26/2023.

When recording a financial event, the date on the journal entry should reflect when the transaction is actually posted in the books, not just the date the receipt was issued. In many systems, cash received flows into the journal on the next business day after the receipt date due to processing and cutoff times. So, if the receipt shows 4/25/2023, the proper journal entry date is typically the following day, 4/26/2023. Using 4/25/2023 would misstate the posting date and make the entry fall in the wrong period. Therefore, the correct practice is to date the journal entry 4/26/2023.