best discount store uses the perpetual system and had sales on account of $5,000 with terms 3/10, n/30. the…
best discount store uses the perpetual system and had sales on account of $5,000 with terms 3/10, n/30. the goods cost is $2,000. the journal entry to record the sale on account would be
Answer
Explanation:
Step1: Record accounts - receivable and sales revenue
When recording a sale on - account, accounts receivable is debited for the amount of the sale and sales revenue is credited for the same amount. Here, the sales on account is $5,000, so Accounts Receivable is debited $5,000 and Sales Revenue is credited $5,000. Debit: Accounts Receivable $5,000 Credit: Sales Revenue $5,000
Step2: Record cost of goods sold and inventory
Under the perpetual inventory system, when goods are sold, the cost of goods sold is debited and the merchandise inventory is credited for the cost of the goods sold. The cost of goods sold is $2,000. So, Cost of Goods Sold is debited $2,000 and Merchandise Inventory is credited $2,000. Debit: Cost of Goods Sold $2,000 Credit: Merchandise Inventory $2,000
Answer:
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| Accounts Receivable | 5,000 | ||
| Sales Revenue | 5,000 | ||
| Cost of Goods Sold | 2,000 | ||
| Merchandise Inventory | 2,000 |