Question

Sales-related transactions, including the use of credit cards Journalize the entries for the following transactions: (If an amount box does not require an entry, leave it blank.) Question Content Area a. Sold merchandise for cash, $24,110. The cost of the goods sold was $14,470. (Record the sale first.)

Answer 1

Here are the journal entries for the given scenario:

a. Sold merchandise for cash, $24,110. The cost of the goods sold was $14,470.

Account Name | Debit | Credit | Description |

| --- | --- | --- | --- |

| Cash | $24,110 | | |

| Sales | $24,110 | | |

| Inventory | $14,470 | Cost of goods sold | Cost of goods sold |

These entries reflect the recording of the cash sale, the revenue generated from the sale, the cost of goods sold, and the reduction in inventory. Since the sale was for cash, there is no credit or account to be recorded. The cost of goods sold is recorded in the cost of goods sold account, which is a contra-asset account that reduces the value of the inventory on the balance sheet. The net income from the sale is the difference between the sales and cost of goods sold, which will be recorded in the sales account.