Question

On August 24, Rag Doll Inc. purchased inventory on account from Lavish Lizards Inc. The selling price of the goods is $29,200 and the cost of goods sold is $13,320. Both companies use perpetual inventory systems. Record the above transactions on the books of both companies. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Rag Doll Inc. (Buyer):

Date	Account Titles and Explanation	Debit	Credit
Aug. 24	enter an account title to record purchase of merchandise on account on August 24	enter a debit amount	enter a credit amount
	enter an account title to record purchase of merchandise on account on August 24	enter a debit amount	enter a credit amount
	(Purchase of merchandise on account)

Lavish Lizards Inc. (Seller):

Date	Account Titles and Explanation	Debit	Credit
Aug. 24	enter an account title to record sale of merchandise on August 24	enter a debit amount	enter a credit amount
	enter an account title to record sale of merchandise on August 24	enter a debit amount	enter a credit amount
	(Sale of merchandise)
24	enter an account title to record cost of goods sold recorded on August 24	enter a debit amount	enter a credit amount
	enter an account title to record cost of goods sold recorded on August 24	enter a debit amount	enter a credit amount
	(Cost of goods sold recorded)

Answer 1

Rag Doll Inc. (Buyer):

Date	Account Titles and Explanation	Debit	Credit
Aug. 24	Merchandise inventory	29200
	Account payable		29200
	(Purchase of merchandise on account)

Lavish Lizards Inc. (Seller):

Date	Account Titles and Explanation	Debit	Credit
Aug. 24	Account receivable	29200
	Sales revenue		29200
	(Sale of merchandise)
24	Cost of goods sold	13320
	Merchandise inventory		13320
	(Cost of goods sold recorded)