On May 1, Johnson Corporation purchased inventory for $40,000 on credit. On May 15, Johnson sold inventory

Question:

On May 1, Johnson purchased inventory for $40,000 on credit. On May 15, Johnson sold inventory with a cost of $10,000 for $25,000 on credit. Prepare journal entries to record these transactions.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...