Question

Which of the following entries or sets of entries would record sales for the month of july of $200,000 for goods costing $119,000 for?

Answer 1

Given:
sales for the month: 200,000
cost of the goods: 119,000

These are the entries on the above transaction.

Assume it is a cash sale:
Debit Credit
Cash 200,000
Sales 200,000

If it is receivable: (Accounts or Notes)
Debit Credit
Accounts/Notes Receivable 200,000
Sales 200,000

Recognizing the cost of the goods.

Cost of goods sold 119,000
Inventory 119,000