The entry to record a sale of $750 (cost of goods $400) with terms of 2/10, n/30 will include a: Group of answer choices debit to cost of sales for $400. credit to cost of sales for $400. debit to inventory for $400. credit to inventory for $350.
Question
The entry to record a sale of 400) with terms of 2/10, n/30 will include a: Group of answer choices
debit to cost of sales for $400.
credit to cost of sales for $400.
debit to inventory for $400.
credit to inventory for $350.
Solution
The entry to record a sale of 400) with terms of 2/10, n/30 will include a:
Debit to Cost of Sales for $400.
Explanation: When a sale is made, two main entries are recorded. First, the sale is recorded by debiting Accounts Receivable (or Cash if it's a cash sale) and crediting Sales Revenue for the selling price of the goods. Second, the cost of the goods sold is recorded by debiting Cost of Sales (or Cost of Goods Sold) and crediting Inventory for the cost of the goods. In this case, the cost of the goods sold is 400 and Inventory would be credited for $400.
Similar Questions
Select all that applyX-Mart uses the perpetual inventory system to account for its merchandise. On May 1, it sold $1,400 of merchandise on credit. The original cost of the merchandise to X-Mart was $500. Demonstrate the required journal entry to record the sale and the cost of the sale by selecting all of the correct actions below.Multiple select question.Debit Cost of Goods Sold $500.Debit Sales $1,400.Credit Sales $1,400.Debit Accounts Receivable $1,400.Credit Cost of Goods Sold $500.Credit Accounts Receivable $1,400.Debit Merchandise Inventory $500.Credit Merchandise Inventory $500.
X-Mart uses the perpetual inventory system to account for its merchandise. On May 1, it sold $1,400 of merchandise for cash. The original cost of the merchandise to X-Mart was $500. Demonstrate the required journal entry to record the sale and the cost of the sale by selecting all of the correct actions below.Multiple select question.Debit Cost of Goods Sold $500.Credit Sales $1,400.Credit Cost of Goods Sold $500.Credit Accounts Receivable $1,400.Debit Sales $1,400.Credit Merchandise Inventory $500.Debit Merchandise Inventory $500.Debit Cash $1,400.
Jo's Market makes a credit sale for $1,000 with terms of 2/10,n/30. The cost of the merchandise is $400. The required journal entry to record the sale and cost of the sale is:Multiple choice question.debit Accounts Payable $1,000; and credit Sales $1,000debit Accounts Receivable $1,000; credit Sales $1,000; debit Cost of Goods Sold $400; and credit Merchandise Inventory $400debit Accounts Receivable $1,000 and credit Sales 1,000debit Accounts Receivable $600; credit Sales $600; debit Cost of Goods Sold $400; and credit Merchandise Inventory $400
Marwad Ltd sold inventory worth $312 for $430 on credit. Marwad Ltd uses the perpetual inventory system. The entry to record the cost of inventory sold would include:Group of answer choicesA debit to Cost of sales and a credit to Inventory for $312A debit to Cash and a credit to Sales for $430A debit to Sales and a credit to Cash for $430A debit to Inventory for $312 and a credit to Cost of sales for $312
10$10$9$100$90Scooter B25$20$18$500$450Totals $1,700$1,620Multiple choice question.Debit Cost of Goods Sold $80.Credit Cost of Goods Sold $80.Credit Loss on Inventory $80.Debit Merchandise Inventory $80.
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