Question

Record sale of merchandise for $2,600 cash.

a) Debit: Cash $2,600; Credit: Sales $2,600
b) Debit: Sales $2,600; Credit: Cash $2,600
c) Debit: Merchandise $2,600; Credit: Cash $2,600
d) Debit: Cash $2,600; Credit: Merchandise $2,600

Answer 1

The correct recording of the sale of merchandise for $2,600 cash would be to debit the Sales account and credit the Cash account.

Step-by-step explanation:

The correct recording of this transaction would be option b) Debit: Sales $2,600; Credit: Cash $2,600.

In accounting, sales are recorded as a credit because they increase the company's revenue. Cash is recorded as a debit because it represents an increase in assets.

In this case, the company recorded a sale of merchandise for $2,600 in cash. To record this transaction, you would debit the Sales account for $2,600 and credit the Cash account for $2,600.