Question

Suppose your company sells goods for $370, of which $235 is received in cash and $135 is on account. The goods cost your company $139 and were paid for in a previous period. Your company also recorded salaries and wages of $105, of which only $37 has been paid in cash.1. Record the sales revenue of $200 for cash and $100 on account and record the cost of goods sold of $125 using one journal entry 2. Record the salaries and wages expense of $70. journal entry has been entered

Answer 1

The Journal entries are as follows:

1.

Cash A/c Dr. $200

Accounts receivable A/c Dr. $100

Cost of goods sold A/c Dr. $125

To sales revenue $300

To inventory $125

(To record the sales revenue, account sales and COGS)

2.

Salary and wages expenses A/c Dr. $105

To cash $37

To Salary and wages payable $68

(To record the salaries and wages expense)