Question

Journalize each of the following transactions assuming a perpetual inventory system:

April 5: Sold merchandise to a customer for ( $ 6,700 ); terms ( 3 / 10, n / 30) (cost of sales ( $ 3,980 ))

Answer 1

The transaction on April 5 is journalized in a perpetual inventory system by debiting Accounts Receivable and Cost of Goods Sold, and crediting Sales Revenue and Inventory for the respective amounts.

Step-by-step explanation:

The student is asking about how to journalize a specific transaction under a perpetual inventory system. Given the transaction took place on April 5, where merchandise was sold for $6,700 with terms 3 / 10, n / 30 and the cost of goods sold was $3,980, the journal entries would be as follows:

• Debit Accounts Receivable: $6,700
• Credit Sales Revenue: $6,700
• Debit Cost of Goods Sold: $3,980
• Credit Inventory: $3,980

These entries reflect the sale of merchandise and the corresponding decrease in inventory as well as the revenue and receivable recorded from the sale.