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On May , Dollar Co. sold merchandise to Pound Co. on account, , terms net . The cost of the goods sold was . The entry to journalize the sale will include aa. debit to Sales for b. credit to Sales for c. debit to Accounts Receivable for d. credit to Accounts Receivable for
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Q. On May , Dollar Co. sold merchandise to Pound Co. on account, , terms net . The cost of the goods sold was . The entry to journalize the sale will include aa. debit to Sales for b. credit to Sales for c. debit to Accounts Receivable for d. credit to Accounts Receivable for
- Record Sale on Account: When a company sells merchandise on account, the amount sold is recorded as a debit to Accounts Receivable and a credit to Sales.
- Debit Accounts Receivable: Debit Accounts Receivable for the amount the customer owes, which is .
- Credit Sales: Credit Sales for the same amount, , to record the revenue from the sale.
- Separate Cost of Goods Sold: The cost of goods sold is not relevant for this entry; it will be recorded separately as a debit to Cost of Goods Sold and a credit to Inventory.
