Question

Harry’s Home & Garden originally purchased merchandise from a supplier at a cost of $2,900. Harry’s sold that same merchandise to a customer for $5,600 cash. What amount would be entered into the Cost of Good Sold Dr. / Inventory Cr. column in Harry’s cash receipts journal for the sale?

Answer 1

COGS = 2900 on Dr.

Accounts payable for Harry’s H&G = 2900 on Cr.

Inventory = 2900 on Dr. & Cr.

Sales = 5600 on Dr.