Where are invoices first recorded in business accounting?

In business accounting, invoices are initially recorded in the Sales Day Book. This book serves as a journal for capturing all sales transactions on credit, detailing each invoice issued to customers. It allows businesses to keep track of what has been sold, the amounts owed, and helps to organize sales data systematically before it is later posted to the Sales Ledger.

Recording invoices in the Sales Day Book helps maintain a clear chronological order of transactions, making it easier to track sales and manage accounts receivable. Once the information is recorded here, it can be summarized and transferred to the Sales Ledger for more detailed monitoring of individual customer accounts and the total sales position of the business. This process provides a foundational step in the accounting cycle, ensuring that sales are accurately reflected in the financial records.

Other options may pertain to different aspects of accounting, such as immediate cash transactions or purchases, but when referring specifically to the initial recording of invoices on credit sales, the Sales Day Book is the appropriate choice.