Inventory that cost $500 is sold for $700, with terms of 2/30, n/60. Give the journal entries
Question:
Inventory that cost $500 is sold for $700, with terms of 2/30, n/60. Give the journal entries to record
(a) The sale of merchandise and
(b) Collection of the accounts receivable. Assume the sales discount is taken and accounted for using the gross method, and a perpetual inventory system is used.
Step by Step Answer:
a Accounts Receivable 700 Sales Revenue 700 To record sales on account Cost of Go...View the full answer
Fundamentals of Financial Accounting
ISBN: 978-1259864230
6th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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